Exciting news on the health-care front; Gardner, Mass.-based Precision Optics Corporation, Inc. (OTC:PEYE) is going the acquisition, announcing Monday that it has completed the acquisition of certain assets of Ross Optical Industries, Inc., a privately-held company based in El Paso
Optics is a leading designer and manufacturer of advanced optical instruments for the medical and defense industries.
The buy extends Precision`s product offering to include a wider range of lens and optical system sizes and expands its presence in the U.S. defense sector, as well as allowing the combined company to leverage Precision Optics’ other products to the expansive Ross Optical customer base, increasing its value-add capabilities.
Ross, for its part, had revenues of $3.9 million and net income of $410,000 in calendar 2018.
As part of the transaction, Precision Optics is acquiring slightly over $1 million of net working capital. The total purchase price is up to $2 million, comprised of $1.5 million in cash at closing and additional payments up to $500,000 subject to a three-year earnout provision.
Precision shares vaulted 15 cents Monday, or 13%, to $1.30, on volume of nearly 90,000 shares.
