Elbit Vision Systems Ltd. (OTCBB: EVSNF.OB) announced today that it has signed a term sheet to acquire ScanMaster IRT Holdings Inc., a Delaware corporation, as well as its fully-owned subsidiaries in Israel and the United States.
ScanMaster IRT is engaged in the development, manufacturing and marketing of equipment for the ultrasonic inspection of industrial parts and components for the automotive and transportation industries, the metal industry, as well as applications for aircraft and jet engine inspection.
For fiscal 2003, ScanMaster had revenues of approximately $5.2 million and net income of approximately $100,000. ScanMaster expects aggregate revenues of approximately $8.5 million and $11 million in 2004 and 2005 respectively.
Consummation of the transaction is subject to completion of due diligence. Upon completion of the transaction ScanMaster will become a fully owned subsidiary of EVS. The acquisition, expected to close on September 1, 2004, calls for a total cash consideration of $3 million in addition to $5.5 million of EVS' common shares.
ScanMaster, established in 1986 by a group of researchers and engineers from the Tel Aviv University in Israel, manufactures nondestructive inspection systems utilizing ultrasonic (UT) technologies for a wide range of industrial applications. The company has an installed base of more than 500 field-proven systems and instruments, including equipment for such inspection applications as: composite material-based aircraft and aerospace structural elements, aircraft engine turbine rings, automotive spot welds, train wheels and rails, as well as plates, bars, tubes and pipes manufactured from steel, aluminum and titanium alloys.
EVS president Zami Aberman said, "We believe the combined company will become a leading provider of high quality inspection systems. This acquisition will enable EVS to leverage its inspection expertise and apply it to the field of NDT applications, giving us the ability to offer a broader range of solutions to customers in the automotive, aircraft and metals industries.
"In addition, EVS' recently established presence in the Far East, made possible through our acquisition of Yuravision, represents significant market opportunity for ScanMaster's innovative products."
Published by Globes [online] - www.globes.co.il - on Tuesday, July 13, 2004