Oclaro selling Santa Rosa facility to Pennsylvania company
Published: Monday, November 26, 2012 at 5:16 p.m.
Last Modified: Monday, November 26, 2012 at 5:16 p.m.
Oclaro is selling its thin-film filter facility in Santa Rosa to a Pennsylvania high-tech manufacturer as part of a $27 million deal, the companies announced Monday.
San Jose-based Oclaro said it will sell its business division on Westwind Boulevard near the Charles M. Schulz-Sonoma County Airport to II-VI Inc. of Saxonburg, Pa. The deal is expected to close Dec. 3.
Under the agreement, Oclaro also agreed to sell its interleaver product line, which makes fiber-optic devices, to Photop Koncent Inc., another II-VI subsidiary.
“We look forward to the world class team at Santa Rosa becoming a part of II-VI,” Francis J. Kramer, the company's president and chief executive, said in a statement.
Officials for both companies couldn't be reached for comment Monday.
The Santa Rosa business unit dates back to 2000, when two former Optical Coating Laboratory Inc. engineers formed Cierra Photonics. The company made thin-film optical filters that increased the capacity and flexibility of high-speed fiber optic networks.
Cierra was purchased in 2003 for $3.7 million in stock by Bookham, Inc., which went on to form Oclaro in 2009 in a merger with Avanex Corp.
Alain Couder, chairman and CEO of Oclaro, said the sale would improve the company's balance sheet and allow it to focus on its core business.
Oclaro will receive $23 million upon close of the deal, $3 million by Dec. 28 and $1 million in escrow until Dec. 31.
Both the new business lines will report within II-VI's Photop Technologies business unit.
Among its products, II—VI manufactures optical components for industrial laser and thermal imaging systems and devices required for high-speed optical networks to increase Internet traffic. The company also makes infrared and visible light products for industrial, scientific, military and medical instruments.
The Associated Press contributed to this report.
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