Helix will receive approximately $12.5 million in cash and $2 million in shares of Applied Films common stock in the transaction. The acquisition is expected to be completed in the fourth quarter of fiscal 2004. The closing of the transaction is subject to certain closing conditions and there is no assurance that the transaction will be completed. We do not expect the transaction to have any material effect on our financial performance for the remainder of our current fiscal year ending June 30, 2004.
The In-line Division is located in the Tainan Science Based Industrial Park, in Tainan, Taiwan. After the closing it will operate as a wholly-owned subsidiary of Applied Films and the In-line Division's management and employees will become a part of Applied Films' new subsidiary.
The In-line Division and Applied Films Corporation both produce equipment for the flat panel display ("FPD") industry and other industries. FPD's are found in a wide variety of consumer and industrial products including cellular telephones, personal digital assistants, televisions, and desktop monitors.
Thomas Edman, President and Chief Executive Officer of Applied Films Corporation, said: "We are very excited about this combination. We currently enjoy a strong relationship with Helix Technology, which has served as a distributor and a licensed manufacturer for several of our earlier generation equipment platforms. The familiarity of the In-line Division personnel with our New Aristo platform will allow us to accelerate our strategy of driving lower costs by manufacturing some of our products in Asia. This capability will help us better serve our customers with a manufacturing facility and experienced people in close proximity to our customer base in Asia. Following the integration we will have over 80 employees in Asia, 50 of whom will be in Taiwan."
"The sale of the Helix Technology in-line equipment division, allows us to focus on continuing to grow our core component business", commented Dr. S.C. Chang, Chairman and CEO of Helix Technology Inc. "Helix Technology is also pleased to see Applied Films Corporation make this commitment to flat panel display equipment manufacturing in Taiwan. We believe Applied Films Corporation is the first of the leading overseas equipment suppliers in the flat panel display industry to move forward with such a major investment."