Shaw & Co Advises on £8.9m sale of Artemis Optical to Gooch & Housego
Bristol-based corporate finance specialist Shaw & Co has advised thin-film coating company Artemis Optical on its £8.9m sale to Gooch & Housego (G&H), a specialist manufacturer of optical components and systems.
Plymouth-based Artemis is renowned for its expertise in a variety of cutting-edge applications and is recognised as a global leader in designing advanced optical filters for tailored electro-optical systems and laser protection, as well as bespoke head-up display combiners.
The company works with its customers to develop customised, system-enabling optical filters, mirrors and pioneering helmet-mounted display patches. Artemis’s products cater to the diverse needs of customers primarily in Aerospace & Defence as well as in the Industrial and Life Sciences markets.
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Based in Ilminster, Gooch & Housego is a photonics technology business with operations in the USA and Europe. A world leader in its field, the company researches, designs, engineers and manufactures advanced photonic systems, components and instrumentation for applications in the Aerospace & Defence, Industrial, Life Sciences and Scientific Research sectors.
The acquisition will further enhance G&H's product portfolio and create new opportunities for vertical integration and the cross-selling of the companies’ combined capabilities. The deal, which is aligned to G&H’s new strategy, also provides the Group with the opportunity to offer both substrates and coating materials of the highest quality that perfectly align with their application or product requirements. In turn, Artemis will be able to access new customers and territories for its offering by utilising G&H’s resources, expertise and global reach.
The total consideration payable for Artemis by G&H is up to £8.9 million. This comprises an initial cash consideration of £4.5 million, funded from existing resources, together with £2.4 million of new G&H ordinary shares to be satisfied by the issue of 412,088 new G&H ordinary shares. There is a deferred contingent cash consideration of up to £2.0 million, payable based upon Artemis’ performance in the two years ending 31 July 2025. The acquisition is expected to complete on 21 July 2023.
In its financial year ended 31 March 2023 Artemis’ revenue was c.£4.3 million and adjusted EBITDA was c£0.7 million. As at the end of June 2023 Artemis had gross assets of c£3 million. This acquisition is expected to be marginally earnings enhancing in the first full financial year of G&H’s ownership.
Charlie Peppiatt, Chief Executive Officer of Gooch & Housego, commented: "The addition of Artemis’s coatings expertise to G&H’s capabilities was identified in our new strategy as one of the opportunities to deliver sustainable margin growth for the Company.
"Artemis’ renowned excellence in thin-film coatings complements our existing capabilities to enable us to deliver advanced photonics technology and unparalleled value for our customers. Together, we are well-positioned to accelerate our customer focused innovation plans and create a better world with photonics."
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Nick Hurst, CEO, Artemis, said: “This acquisition represents an exciting step forward in the journey of our company. We look forward to continuing our growth within the G&H group and realising the synergies that the opportunity brings. I'd like to thank Shaw & Co and the rest of the Artemis advisory team in their guidance and assistance in getting this deal completed.”
Myles Hamilton, Director – M&A, Shaw & Co, said: “This is a highly significant deal for Artemis and the South West that will provide the opportunity for locally developed, cutting-edge technology to expand into new global markets.”
