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WEST BERLIN, N.J. Photonics supplier Dynasil Corporation of America acquired the stock of Radiation Monitoring Devices, Inc. and specific assets of RMD Instruments LLC for approximately $20 million including $12.5 million of cash and 4.6 million shares of Dynasil common stock.
Dynasil hopes the RMD acquisition will triple revenues and profits at the photonics company, while shares outstanding should approximately double. The products and technological capabilities provided by RMD also will aid in future growth, say representatives. Dynasil manufactures photonic products including optical materials, components, coatings, and specialized instruments. RMD has a history of strong cash flow; it adds scale and extensive technology capabilities to the business portfolio; and it has exciting growth potential, said Craig T. Dunham, president and CEO of Dynasil.
In order to finance the acquisitions, Dynasil completed a $9 million bank term loan at a 6% annual interest rate and issued approximately $5 million of 10% Cumulative Convertible Preferred Stock that is convertible at a $2.50 per share price. Dynasil was a profitable $11 million company in fiscal year (FY) 2007 by executing a growth and process improvement strategy begun in 2004. 2007 revenues for RMD exceeded $20 million.
RMD is comprised of two business entities, one which performs research under government contracts such as SBIRs while the other manufactures and sells photonics-related instruments and components. The company, with a staff that includes 38 Ph.D. holders, has a significant R&D team that contracts with the National Institute of Health, the Department of Energy, the Department of Defense, NASA, NSF, the Domestic Nuclear Detection Office, and the Department of Homeland Security.
Former RMD owners Gerald Entine, Ph.D., and Jack Paster are now major Dynasil shareholders and will stay with the company. Dynasil has acquired two other companies and a product line during the last three years and has delivered significant performance improvements at all three of its business units.
For more information, visit www.dynasil.com.
