MKS to sell Ophir Optics unit to TTM Technologies for $650M; shares rise

Investing.com -- MKS Incorporated (NASDAQ: MKSI) has agreed to sell its Ophir Optics business unit to TTM Technologies Inc (NASDAQ: TTMI) for $650 million in cash, sending shares of both companies higher in premarket trading on Monday. The transaction underscores MKS’s strategy to monetize non-core assets and bolster its balance sheet while expanding TTM’s portfolio of mission-critical optical solutions.

Shares of MKS rose 6.1% prior to the opening bell following the announcement of the divestment. Meanwhile, TTM Technologies advanced 6.4% as investors welcomed the accretive addition to its defense and industrial offerings.

The $650 million purchase price values Ophir Optics at an estimated multiple of over 18x projected fiscal 2026 Adjusted EBITDA for MKS, while representing a multiple of roughly 10.3x expected fiscal 2027 Adjusted EBITDA for TTM prior to synergies. TTM expects the acquisition to be immediately accretive to both its Adjusted EBITDA margin and non-GAAP diluted earnings per share upon closing.

Headquartered with operations in Israel and Romania, Ophir Optics specializes in high-precision infrared thermal imaging and laser optics solutions serving defense, security, and industrial markets. MKS Chief Executive Officer John T.C. Lee noted that the sale allows the company to capitalize on the value created within its Specialty Industrial segment while sharpening its primary focus on semiconductor manufacturing and electronics packaging.

For its part, TTM plans to fund the all-cash acquisition alongside a previously announced $400 million capital expansion in Asia using existing cash on hand, future cash flows, and borrowings under its revolving credit facility. TTM Chief Executive Officer Edwin Roks highlighted that the transaction adds advanced optics capabilities to meet growing defense surveillance needs and industrial laser applications.

The deal explicitly excludes MKS’s Ophir Instruments laser characterization business and the Ophir brand itself, ensuring uninterrupted support for MKS photonics customers. Subject to customary closing conditions and regulatory approvals, the transaction is expected to close in the second quarter of 2027.

Original Article

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