SOURCE: FLIR Systems, Inc.

September 14, 2007 01:00 ET

FLIR Systems Announces Agreement to Acquire Controlling Interest in Cedip Infrared Systems

PORTLAND, OR and PARIS--(Marketwire - September 14, 2007) - FLIR Systems, Inc. (NASDAQ: FLIR) announced today that it has entered into an agreement to acquire a controlling interest in Cedip Infrared Systems, a leading provider of infrared cameras and stabilized gimbaled systems based in Croissy-Beaubourg, France. Cedip is listed on the French Alternext stock market under the symbol ALCED.PA.

Founded in 1989, Cedip manufactures cooled mid- and long-wave infrared cameras for the science and security markets as well as high performance, stabilized gimbals for a variety of airborne commercial and government applications. For the fiscal year ended December 31, 2006, Cedip reported revenue of EUR 18.2 million (approximately $25.1 million) and operating income of EUR 3.1 million (approximately $4.3 million).

Under the terms of the agreement, controlling shareholders of Cedip have agreed to sell and FLIR has agreed to buy shares representing 67.8% of the share capital of Cedip, on a fully diluted basis, for a cash consideration of EUR 19 per share or a total of EUR 41.4 million (approximately $57.1 million). The transaction is subject to various closing conditions, including the authorization of the French Minister of Finance and Economy. Following the purchase of shares described above, FLIR will launch a mandatory Standing Market Offer in France pursuant to which it will undertake to buy Cedip's remaining shares at the same price. In the event that after such Standing Market Offer, which is expected to occur by the end of January 2008 at the latest, FLIR owns at least 95% of the share capital and voting rights of Cedip, the price per share to be paid to all shareholders of Cedip shall be increased by an additional EUR 0.50 per share. It is FLIR's intent to request the delisting of Cedip from Alternext at the end of the Standing Market Offer. In the event all outstanding shares are purchased by FLIR, total consideration paid will be EUR 62.7 million (approximately $86.4 million). As of December 31, 2006, Cedip had net cash on hand of EUR 15.0 million (approximately $20.7 million).

In the Science camera market, the acquisition improves FLIR's international distribution network and brings new products and technology, including cooled mid-wave infrared cameras, while also providing an important manufacturing and technology base in Europe. FLIR anticipates cost savings through integrated distribution and lower manufacturing costs from utilizing FLIR infrared sensors in certain Cedip products.

Cedip's Polytech subsidiary, located in Eskilstuna, Sweden, specializes in mid-size, low-cost, highly stabilized gimbal systems. Polytech's products will expand FLIR's portfolio of stabilized multi sensor systems and position it to take advantage of incremental growth opportunities in FLIR's Government Systems and Commercial Vision Systems businesses.

Upon closing of the transaction, Cedip's infrared camera operations will be integrated into FLIR's Thermography Division. The Polytech subsidiary will be integrated into FLIR's Government Systems Division.

"We are pleased to announce this transaction," commented Earl Lewis, Chairman, President and CEO of FLIR. "The Cedip team has an outstanding reputation for designing and manufacturing high performance cameras and will provide FLIR with complementary products and capabilities to help drive growth in key market segments world-wide. I welcome Cedip's dedicated and hard working employees to FLIR."

FLIR anticipates this transaction will be neutral to 2008 earnings and accretive in subsequent years.

Forward-Looking Statements

The statements in this release, including the statements of Earl R. Lewis, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors including, without limitation, the risks discussed from time to time in the Company's Securities and Exchange Commission filings and reports. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release, or for changes made to this document by wire services or Internet service providers.

About FLIR Systems

FLIR Systems, Inc. is a world leader in the design, manufacture and marketing of thermal imaging and stabilized camera systems for a wide variety of thermography and imaging applications including condition monitoring, research and development, manufacturing process control, airborne observation and broadcast, search and rescue, drug interdiction, surveillance and reconnaissance, navigation safety, border and maritime patrol, environmental monitoring and ground-based security. Visit the Company's web site at www.FLIR.com.

Contact Information

  • Company Contact:
    Tony Trunzo
    FLIR Systems, Inc.
    (503) 498-3547
    www.flir.com