ESC to Acquire Coherent Medical Group

ESC Medical Systems Ltd. (Yokneam, Israel) has agreed to acquire Coherent Medical Group (CMG, Santa Clara, CA, USA), a division of Coherent, Inc. for a total of about US$203 million in cash, notes, and stock. The move quickly followed an earlier announcement that the two parties were having discussions about a possible transaction.

Following the closing of the transaction, ESC plans to change its name to Lumenis, derived from lumen, the Latin word for light. Bernard Couillaud, president and CEO of Coherent, Inc. will be appointed to ESC's board of directors. Coherent will continue to supply parts and components and provide on a transitional basis ongoing operational support. ESC manufactures medical devices utilizing intense pulsed light source and laser technology for aesthetic, surgical, and other medical applications. Coherent also manufactures medical lasers. Combined sales for the two businesses in the year 2000 were around $360 million.

"We are excited about the opportunities that this transaction will create for our customers, shareholders, and employees,” said Yacha Sutton, president and CEO of ESC. "CMG's products and distribution assets are highly complementary to ESC.”

Dr. Couillaud commented, "The transaction furthers Coherent's strategic objectives by giving us the opportunity to concentrate on the significant opportunities that we have in our telecommunications, semiconductor, and electro-optics markets.”
ESC Medical Systems Ltd. (Yokneam, Israel; www.escmed.com) has agreed to acquire Coherent Medical Group (CMG, Santa Clara, CA, USA; www.coherentinc.com), a division of Coherent, Inc. for a total of about US$203 million in cash, notes, and stock. The move quickly followed an earlier announcement that the two parties were having discussions about a possible transaction.

Following the closing of the transaction, ESC plans to change its name to Lumenis, derived from lumen, the Latin word for light. Bernard Couillaud, president and CEO of Coherent, Inc. will be appointed to ESC's board of directors. Coherent will continue to supply parts and components and provide on a transitional basis ongoing operational support. ESC manufactures medical devices utilizing intense pulsed light source and laser technology for aesthetic, surgical, and other medical applications. Coherent also manufactures medical lasers. Combined sales for the two businesses in the year 2000 were around $360 million.

"We are excited about the opportunities that this transaction will create for our customers, shareholders, and employees,” said Yacha Sutton, president and CEO of ESC. "CMG's products and distribution assets are highly complementary to ESC.”

Dr. Couillaud commented, "The transaction furthers Coherent's strategic objectives by giving us the opportunity to concentrate on the significant opportunities that we have in our telecommunications, semiconductor, and electro-optics markets.”



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