California-based Oclaro Inc. has agreed to acquire the local Spectra-Physics operation of Newport Corp. as part of an asset-exchange deal.
Oclaro plans to consolidate some of Spectra-Physics' laser diode manufacturing functions in Europe but will keep the Tucson operation as a technology center, an executive of San Jose-based Oclaro said.
"Tucson will remain a key product-design and technology center for the company," said Yves LeMaitre, executive vice president and general manager of Oclaro's advanced photonic solutions division.
The Spectra-Physics operation will remain at 3321 E. Global Road, though some manufacturing operations will likely be consolidated to Oclaro locations in Caswell, England, and in Zurich, Switzerland, LeMaitre said.
There likely will be some layoffs among the roughly 100 current employees at the Tucson Spectra-Physics plant, but the number won't be known until consolidation plans are finalized, LeMaitre said.
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"It's going to be an intelligent consolidation. . . . It will not be a bloodbath," he said.
Oclaro will retain Spectra-Physics general manager Scott Dunbar and other key management at the Tucson location, LeMaitre added.
Spectra-Physics employed about 200 people until mid-2008, when the company said it would cut staff as part of a plan to move some operations to an Asian subcontractor.
Under the deal between the two publicly traded companies, Newport will acquire Oclaro's New Focus business and its portfolio of products, including opto-electronics, high-resolution actuators, opto-mechanics and tunable lasers.
Simultaneously, Oclaro will acquire Newport's local Spectra Physics business.
As part of the transaction, Newport will pay Oclaro $3 million in cash to reflect differences in revenue levels of the two businesses, as well as to compensate Oclaro for the higher costs involved in moving the diode manufacturing business to its fabrication facilities in Europe.
Under the deal, Oclaro also will become a main supplier of high-power diodes to Newport.
The transaction is expected to close within three to five weeks.
Did you know
Newport Corp., which provides parts for makers of semiconductor processing equipment and automated assembly systems, acquired the local Spectra Physics facility for $5.6 million in 2004 when it purchased Thermo Electron Corp.'s optics-technology division for $300 million.
The Spectra-Physics operation came to Tucson in 1994 as Opto Power Corp.