The semiconductor firm, Brooks Automation, Inc. (NASDAQ: BRKS) has entered into a definitive agreement to sell its Semiconductor Solutions Group business to Thomas H. Lee Partners, L.P. for $30 billion in cash.
Brooks automation business that provides high precision, high throughput vacuum robots and systems, reported nearly $613 million in revenue in the last twelve months, ending June 30, 2021. The purchase price is subject to adjustments for working capital and other items. Brooks anticipate closing the transaction in the first half of calendar year 2022 upon satisfaction of customary closing conditions and regulatory approvals.
Brooks’ automation business also provides contamination control solutions to the global semiconductor capital equipment industry. Recently, the business expanded into collaborative robotics for multi-market applications.
“We are proud of the highly innovative automation business that we have built, which has seen great success in the semiconductor industry. We look forward to its continued growth under THL’s ownership” stated Steve Schwartz, President and CEO of Brooks. “We are equally proud of the strength and growth of our life sciences business and excited by the significant proceeds from this transaction which will afford strategic investments in a market where we see tremendous opportunity.”
“Over the past 40 years, Brooks has built an impressive portfolio of automated solutions to address some of the most difficult engineering challenges facing the semiconductor capital equipment industry,” stated Michael Kaczmarek, Managing Director, THL. “We are excited to support the business in its next leg of growth in semiconductor and beyond.”
Jim Carlisle, Managing Director and Head of THL’s Automation Fund, said: “THL remains focused on investing behind automation leaders, as underscored by the establishment of our Automation Fund in 2020, and working with management to accelerate growth. We welcome the Brooks semiconductor and multi-market collaborative automation team into our family of dynamic and innovative automation solution providers, and we look forward to partnering with the talented team from Brooks Automation to unlock new growth opportunities.”
As a result of the pending sale to THL, Brooks will no longer pursue a separation into two independent and publicly traded companies as announced in May 2021. Following completion of the sale, expected in first half of 2022, the semiconductor automation business will transition to the ownership of THL along with the Brooks Automation name and brand. The remaining life sciences business will then operate as a standalone publicly traded life sciences company, under a new name to be announced in the near future. Management will host an investor day to discuss the life sciences business on November 16, 2021.
In connection with the transaction, Evercore acted as the exclusive financial advisor and Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. acted as legal counsel to Brooks Automation.
