G&H announces acquisition of Phoenix Optical Technologies for £6.8 million

31 Oct 2024

Objective of cash purchase is to strengthen G&H’s aerospace and defense capabilities.

Gooch & Housego (G&H), a developer of advanced photonics solutions, has announced the acquisition of Phoenix Optical Technologies, a manufacturer of precision optics based in St. Asaph, Wales, UK. The price disclosed is £6.8 million – half immediately, and half spread over the coming three years, dependent on performance.

G&H commented, “This strategic acquisition strengthens our aerospace and defense capabilities and expands the company’s presence in the UK and European markets as a critical supplier to leading defence primes.”

Phoenix offers expertise in precision optics processes, including prisms, domes, specialist machining and Single Point Diamond Turning (SPDT). These capabilities will significantly bolster G&H’s Optical Systems division, enhancing the company’s ability to deliver optical systems solutions to customers in aerospace and defense, as well as industrial and life sciences markets.

‘Better together’

Charlie Peppiatt, CEO of G&H, commented, “Phoenix is a highly capable, well-regarded British precision optics supplier with a strong portfolio of products and services. Together we will be able to better solve our customers’ most complex optical systems requirements.“The combination of the Phoenix and G&H teams brings together industry leading technology and know-how with efficient scalable operations that will support G&H to deliver an exceptional customer experience, become a first-choice optical systems solutions provider and make a better world with photonics.”

Tony Palframan, founder and CEO of Phoenix, said, “By combining our expertise with G&H’s global scale and reach, we see tremendous opportunities to further develop our offerings and bring even more value to our customers.”

Terms of acquisition

G&H has acquired the entire issued share capital of “Fawkes Newco 2 Limited”, a newly established holding company of the Phoenix Optical group of companies. The total consideration payable for Phoenix by G&H is up to £6.75 million ($8.76 million). The overall deal comprises an initial cash consideration of £3.4 million, funded from [G&H’s] existing resources. There is a deferred contingent cash consideration of up to £3.35 million, payable based upon Phoenix’s performance in the three years ending 30 June 2027.

G&H added that, as a result of the detail it is “well-positioned to accelerate growth, enhance its precision optics and optical systems capabilities, and solidify its position as a leading provider of optical and photonic solutions.”

Phoenix has been at the forefront of precision optics since its founding by Palframan in 1991. Over the past three decades, the company has adapted to meet the evolving technological demands of the market, offering a comprehensive in-house service that spans the entire optical manufacturing process. From raw glass materials to polished, coated finished optical parts, prisms, and assemblies, Phoenix offers an end-to-end solution for complex requirements.