Electronics Production | March 15, 2006
Bookham sells UK-plant
Bookham, Inc., a provider of optical components, modules and subsystems, has signed an agreement for the sale and associated leaseback of its Caswell, UK, manufacturing facility with Scarborough Developments, a UK-based property investment company.
On closing, which is subject to customary closing conditions and expected to occur on or before March 30, 2006, the transaction will result in immediate proceeds to the Company of £13.8 million (approximately US $24 million). As part of this transaction, the Company will enter into a long-term lease of the Caswell site with Scarborough Developments. “With this latest transaction, Bookham will have raised approximately $101 million from a public stock offering and the sale of various assets, including this sale and leaseback of our manufacturing facility in Caswell. In addition, in January we announced actions that are expected to result in the retirement of all of Bookham's long term debt, which further strengthens our financial position,” said Dr. Giorgio Anania, president and CEO of Bookham Inc. “We believe Bookham now has one of the stronger balance sheets in the optical components market, and we plan to leverage our improved financial position to better address our growing markets.”