-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AmbLZigTtIUSf/t8/TGetVu96f7wZnmWwSPikwCSaXSFyai9dE1/7fIPloyNiGC6 4YniA2uBzBf4ZKzn8CEGAA== 0000912057-00-016835.txt : 20000410 0000912057-00-016835.hdr.sgml : 20000410 ACCESSION NUMBER: 0000912057-00-016835 CONFORMED SUBMISSION TYPE: SC TO-T/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20000407 GROUP MEMBERS: ONIX AQUISITION INC. GROUP MEMBERS: THERMO ELECTRON CORPORATION GROUP MEMBERS: THERMO INSTRUMENT SYSTEMS INC SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: ONIX SYSTEMS INC CENTRAL INDEX KEY: 0001047747 STANDARD INDUSTRIAL CLASSIFICATION: MEASURING & CONTROLLING DEVICES, NEC [3829] IRS NUMBER: 760546330 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC TO-T/A SEC ACT: SEC FILE NUMBER: 005-55073 FILM NUMBER: 595879 BUSINESS ADDRESS: STREET 1: 22001 NORTH PARK DRIVE STREET 2: P O BOX 9046 CITY: KINGWOOD PARK STATE: TX ZIP: 77339-3804 BUSINESS PHONE: 2813481111 MAIL ADDRESS: STREET 1: 22001 NORTH PARK DRIVE CITY: KINGWOOD STATE: TX ZIP: 773393804 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: THERMO INSTRUMENT SYSTEMS INC CENTRAL INDEX KEY: 0000795986 STANDARD INDUSTRIAL CLASSIFICATION: MEASURING & CONTROLLING DEVICES, NEC [3829] IRS NUMBER: 042925809 STATE OF INCORPORATION: DE FISCAL YEAR END: 0102 FILING VALUES: FORM TYPE: SC TO-T/A BUSINESS ADDRESS: STREET 1: 81 WYMAN ST STREET 2: PO BOX 9046 CITY: WALTHAM STATE: MA ZIP: 02454-9046 BUSINESS PHONE: 7816221000 MAIL ADDRESS: STREET 1: 81 WYMAN ST STREET 2: PO BOX 9046 CITY: WALTHAM STATE: MA ZIP: 02454 SC TO-T/A 1 SC TO/A SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 SCHEDULE TO/A (Rule 14d-100) TENDER OFFER STATEMENT UNDER SECTION 14(d)(1) OR 13(e)(1) OF THE SECURITIES EXCHANGE ACT OF 1934 Amendment No. 1 ONIX SYSTEMS INC. (Name of Subject Company) ONIX ACQUISITION INC. (Offeror) THERMO INSTRUMENT SYSTEMS INC. (Offeror) THERMO ELECTRON CORPORATION (Offeror) COMMON STOCK, PAR VALUE $0.01 PER SHARE (Title of Class of Securities) CUSIP 67088G 10 8 (CUSIP Number of Class of Securities) Seth H. Hoogasian, Esq. General Counsel Thermo Electron Corporation 81 Wyman Street Waltham, Massachusetts 02454-9046 (781) 622-1000 (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications on Behalf of Filing Persons) with a copy to: Neil H. Aronson, Esq. Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. One Financial Center Boston, Massachusetts 02111 (617) 542-6000 CALCULATION OF FILING FEE Transaction Valuation(1): $30,003,669 Amount of Filing Fee(2): $6,001 (1) For purposes of calculating fee only. This amount is based upon (a) the maximum number of Shares to be purchased pursuant to the Offer and (b) the price offered per Share. (2) The amount of the filing fee, calculated in accordance with Regulation 240.0-11 under the Securities Exchange Act of 1934, as amended, equals 1/50 of one percent of the Transaction Valuation. [X] Check the box if any part of the fee is offset as provided by Rule 0-11(a)(2) and identify the filing with which the offsetting fee was previously paid. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. Amount Previously Paid: $6,001 Form or Registration No.: Schedule TO Filing Party: Thermo Instrument Systems Inc. Date Filed: March 13, 2000 [ ] Check the box if the filing relates solely to preliminary communications made before the commencement of a tender offer. Check the appropriate boxes below to designate any transactions to which the statement relates: [X] third-party tender offer subject to Rule 14d-1. [ ] issuer tender offer subject to Rule 13e-4. [X] going-private transaction subject to Rule 13e-3. [ ] amendment to Schedule 13D under Rule 13d-2. Check the following box if the filing is a final amendment reporting the results of the tender offer: [ ] This Amendment No. 1 amends and supplements the Tender Offer Statement on Schedule TO relating to the offer by ONIX Acquisition Inc., a Delaware corporation (the "Purchaser") and a wholly-owned subsidiary of Thermo Instrument Systems Inc., a Delaware corporation ("Thermo Instrument"), to purchase all outstanding shares of common stock, par value $0.01 per share (the "Shares"), of ONIX Systems Inc., a Delaware corporation (the "Company"), at a purchase price of $9.00 per Share net to the seller in cash, without interest thereon, upon the terms and subject to the conditions set forth in the Offer to Purchase dated March 13, 2000 (the "Offer to Purchase"), a copy of which is attached as Exhibit 12(a)(1) to the Schedule TO, and in the related Letter of Transmittal (which, together with the Offer to Purchase, constitute the "Offer"), a copy of which is attached as Exhibit 12(a)(2) to the Schedule TO. ITEMS 2 AND 13 Item 2, and Items 2, 4 and 13(a)(3) of Item 13 of the Schedule TO are hereby amended by deleting the section of Offer to Purchase captioned "Certain Information Concerning The Company - Recently Released Financial Data" and replacing the information set out in the section of the Offer to Purchase captioned "Certain Information Concerning The Company - Financial Information" with the following: FINANCIAL INFORMATION. Set forth below is certain selected consolidated financial information with respect to the Company and its subsidiaries excerpted or derived from the audited consolidated financial statements contained in the Company's Annual Report on Form 10-K for its fiscal year ended January 1, 2000 (the "Company Report"). More comprehensive financial information is included in the Company Report and in other documents filed by the Company with the Commission (which may be inspected or obtained in the manner set forth above), and the following financial information is qualified in its entirety by reference to the Company Report and other documents and all of the financial information (including any related notes) contained therein or incorporated therein by reference. The selected financial information presented below as of and for the fiscal years ended January 1, 2000, January 2, 1999, January 3, 1998, December 28, 1996 and December 30, 1995, has been derived from the Company's Consolidated Financial Statements, which have been audited by Arthur Andersen LLP. The selected financial information as of and for the fiscal year ended December 31, 1994 has not been audited. SELECTED CONSOLIDATED FINANCIAL INFORMATION
1999 1998(a) 1997(b) 1996(c) 1995(d) 1994 -------- -------- -------- -------- -------- -------- (IN THOUSANDS EXCEPT PER SHARE AMOUNTS) STATEMENT OF INCOME DATA: Revenues.......................... $139,969 $153,653 $121,525 $95,316 $72,105 $62,059 Net Income........................ 2,319 8,000 8,799 4,858 3,627 1,264 Basic and Diluted Earnings per Share........................... .16 .55 .79 .46 .34 .12 Weighted Average Shares: Basic........................... 14,357 14,515 11,083 10,667 10,667 10,667 Diluted......................... 14,357 14,520 11,083 10,667 10,667 10,667 BALANCED SHEET DATA (AT END OF PERIOD): Working Capital................... $ 79,652 $ 74,843 $ 41,947 $29,873 $26,199 $13,327 Total Assets...................... 183,041 180,578 159,709 97,010 76,221 71,710 Shareholders' Investment.......... 147,920 146,547 104,938 73,110 59,791 50,795 OTHER DATA: Book Value per Share.............. $ 10.30 $ 10.21 $ 8.53 Cash Dividends.................... -- -- -- -- -- -- Ratio of Earnings to Fixed Charges (e)..................... 4.59x 11.28x 18.19x
- ------------------------ (a) Reflects the July 1998 acquisition of the Mid-South Companies and the March 1998 initial public offering of Company common stock. (b) Reflects the acquisition of the Peek Measurement Business effective in November 1997, the December 1997 acquisition of Fluid Data, Inc. and the September and October 1997 private placements of Company common stock. (c) Reflects the October 1996 acquisition of Kay-Ray/Sensall and the March 1996 acquisition of VG Gas Analysis. (d) Reflects the July 1995 acquisition of Flow Automation. (e) For purposes of computing the ratios of earnings to fixed charges, "earnings" represent income before taxes, plus fixed charges. "Fixed charges" consist of interest on indebtedness and one-third of rental expense, which is deemed to be the interest component of such rental expense. ITEMS 6 AND 13 Item 6, and Item 7 of Item 13 are hereby amended by including just after the section of the Offer to Purchase captioned "Special Factors --Conduct Of The Company's Business If the Offer Is Not Completed" the following new section: STOCKHOLDER LITIGATION In late March 2000, a class action was filed in the Court of Chancery of the State of Delaware in and for New Castle County by a stockholder of the Company (the "Action"). The complaint in the Action names the Company, Thermo Instrument, Thermo Electron and the directors of the Company as defendants and alleges, among other things, that the Company's directors breached their respective fiduciary duties by not negotiating and/or reformulating the terms of the tender offer and that the proposed purchase price does not represent the true value of the Company's assets and future prospects. The complaint requests that the Court of Chancery, among other things, declare that the Action is a proper class action and enjoin the defendants from proceeding with, consummating or closing the proposed transaction. The Purchaser's obligations to accept for payment and pay for Shares tendered in the Offer will not be relieved if the Action is still pending immediately prior to the Expiration Date unless a court order or injunction is in effect that prohibits consummation of the Offer or the Merger. See "--Certain Conditions Of The Offer." ITEM 11. ITEM 11(b) is hereby amended as follows: The section of the Offer to Purchase captioned "The Tender Offer-- Certain Conditions Of The Offer" is amended such that the first three lines on page 35 of the Offer to Purchase are as follows: "shares and may amend or terminate the Offer if (1) the Minimum Condition has not been satisfied on or before the Expiration Date or (2) at any time on or after March 13, 2000 and on or before the Expiration Date, any of the following events shall occur:" ITEM 12. EXHIBITS. Item 12 of the Schedule TO is hereby amended by adding the following: Exhibit 12(j) Presentation materials provided to the special committee of the Board of Directors of Thermo Instrument by J.P. Morgan Securities Inc. and The Beacon Group Capital Services, LLC on January 29, 2000 in connection with the offer to purchase shares of common stock of ONIX Systems Inc. ITEM 13. Items 13(a)(1) and 13(a)(2) of Item 13 are hereby amended by replacing them with the following: (a)(1) The audited consolidated financial statements of the Company as of and for the fiscal years ended January 1, 2000 and January 2, 1999 are incorporated herein by reference to the Consolidated Financial Statements of the Company included as Exhibit 13 to the Company's Annual Report on Form 10-K for the fiscal year ended January 1, 2000 filed with the Commission on March 16, 2000. (2) Not applicable. SIGNATURE After due inquiry and to the best of my knowledge and belief, I certify that the information set forth in this Statement is true, complete and correct. ONIX ACQUISITION INC. BY: /s/ Earl R. Lewis -------------------------------------- Name: Earl R. Lewis Title: President THERMO INSTRUMENT SYSTEMS INC. BY: /s/ Earl R. Lewis -------------------------------------- Name: Earl R. Lewis Title: President and Chief Executive Officer THERMO ELECTRON CORPORATION BY: /s/ Theo Melas-Kyriazi -------------------------------------- Name: Theo Melas-Kyriazi Title: Vice President and Chief Financial Officer Date: April 7, 2000 EXHIBIT INDEX
EXHIBIT DESCRIPTION 12(a)(1)* Offer to Purchase dated March 13, 2000 12(a)(2)* Letter of Transmittal 12(a)(3)* Notice of Guaranteed Delivery 12(a)(4)* Letter from the Dealer Managers to Brokers, Dealers, Commercial Banks, Trust Companies and Nominees 12(a)(5)* Letter to Clients for use by Brokers, Dealers, Commercial Banks, Trust Companies and Nominees 12(a)(6)* Summary Advertisement as published on March 13, 2000 12(a)(7)* Guidelines for Certification of Taxpayer Identification Number on Substitute Form W-9 12(a)(8) Press Release issued by Thermo Instrument on January 31, 2000 (incorporated herein by reference to Exhibit 99 to the Current Report on Form 8-K of Thermo Instrument filed with the Commission on February 1, 2000) 12(a)(9) Press Release issued by Thermo Electron on January 31, 2000 (incorporated herein by reference to Exhibit 99 to the Current Report on Form 8-K of Thermo Electron filed with the Commission on February 1, 2000) 12(a)(10)* Press Release issued by Thermo Instrument on March 13, 2000 12(b)* Loan Agreement dated as of March 1, 2000 between Thermo Electron and Thermo Instrument 12(c)* Opinion of J.P. Morgan Securities Inc. and The Beacon Group Capital Services, LLC dated January 29, 2000 12(d)* Not applicable 12(e)* Not applicable 12(f) Summary of Appraisal Rights (Included in Exhibit 12(a)(1) in the section captioned "The Merger; Appraisal Rights" and Schedule III to Exhibit 12(a)(1) ("Section 262 Of The Delaware General Corporation Law") 12(g)* Slide Presentation of Thermo Electron to Financial Analysts 12(h)* Not applicable 12(j) Presentation materials provided to the special committee of the Board of Directors of Thermo Instrument by J.P. Morgan Securities Inc. and The Beacon Group Capital Services, LLC on January 29, 2000 in connection with the offer to purchase shares of common stock of ONIX Systems Inc.
* Previously filed EX-12.(J) 2 EX-12(J) January 29, 2000 Confidential - -------------------------------------------------------------------------------- Project Octopus Presentation to the Board of Directors of Thermo Instrument Systems JPMorgan THE BEACON GROUP This presentation was prepared exclusively for the benefit and internal use of Thermo Instrument Systems ("Thermo Instrument") in order to indicate, on a preliminary basis, the feasibility of a possible transaction or transactions and does not carry any right of publication or disclosure to any other party. This presentation is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by J.P. Morgan and/or The Beacon Group Capital Services, LLC ("The Beacon Group"). Neither this presentation nor any of its contents may be used for any other purpose without the prior written consent of J.P. Morgan and/or The Beacon Group. The information in this presentation is based upon management forecasts and reflects prevailing conditions and our views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was provided to us by or on behalf of Thermo Instrument or which was otherwise reviewed by us. In addition, our analyses are not and do not purport to be appraisals of the assets, stock, or business of Thermo Instrument. JPMorgan THE BEACON GROUP By spinning in publicly-traded subsidiaries, Thermo Instrument reaps significant benefits - -------------------------------------------------------------------------------- - ---------------- o Allows Thermo Instrument to develop a holistic Strategic strategy for the entire instruments business - ---------------- (e.g., growth, profitability, role of acquisitions) o Enables coordination of market presence across products, customers, industries in a way that maximizes value for Thermo Instrument o Shelters individual business units from public market visibility and demands - ---------------- o Makes it possible to combine businesses in Operational overlapping markets (e.g., ThermoQuest and - ---------------- BioAnalysis) to mutual advantage o Enhances cooperation across businesses (e.g., joint sales, shared R&D) o Allows rationalization (e.g., combined service/support network) o Makes it easier to redeploy assets (e.g., skilled people, capital) to best use - ---------------- o Enables consistent metrics and performance Organizational management - ---------------- o Begins to develop a "shared culture" at Thermo Instrument o Structurally ensures cooperation o Provides a wider breadth of career paths for top performers JPMorgan THE BEACON GROUP 3 Spin-in analysis summary - --------------------------------------------------------------------------------
Implied Price Proposed spin-in valuation(3) ------------------- 52-week range range ------------------ Public(4) Public(3) 2 weeks --------------- 30-day ---------------- Mid-point(2) 1999 FV/ 2000 FV/ minority spin-in Company Current(1) prior Low High average Low High premium EBITDA EBITDA shares cost - ------------------------------------------------------------------------------------------------------------------------------------ [Summary Information for Thermo Optek, ThermoQuest, Thermo BioAnalysis and Metrika Systems appears here.] Onix Systems 7.81 6.50 4.50 9.00 6.65 8.00 9.00 31% 8.7x 6.1x 2.5 22 - ------------------------------------------------------------------------------------------------------------------------------------
(1) As of 1/25/00 (2) Calculated versus price 2 weeks prior (3) Based on midpoint of proposed spin-in range (4) Does not include impact of options JPMorgan THE BEACON GROUP 4 Summary valuation - ONIX Systems - -------------------------------------------------------------------------------- $ per share and implied 1999 EBITDA multiple Preliminary Two-weeks prior Current $6.50 $7.81 --------- Discounted cash flow(1) $7.50 7.3x 8.4x $8.25 --------- ---------- Precedent transactions(2) $7.75 7.6x 10.2x $9.50 ---------- ---------- Trading multiples $8.50 8.7x 10.2x $9.50 ---------- ---------------------- 52-week high/low $4.50 2.9x 9.5x $9.00 ---------------------- -------------------------------------------------------- $3.00 $5.00 $7.00 $9.00 $11.00 $13.00 $15.00 Equity value per share (1) Assumes WACC of 11.0%-12.0% and terminal value growth of 1.0%-2.0% (2) Reflects change-of-control transactions where, on average, higher premiums are paid relative to the purchase of minority stakes. According to J.P. Morgan's M&A Research group, change-of-control transactions have a median premium of 33% versus 23% for minority buy-outs since 1988 Note: Valuation is preliminary and is based on management forecasts; prices as of January 25, 2000 JPMorgan THE BEACON GROUP 5 Pro forma income statement impact - -------------------------------------------------------------------------------- Pro forma for year ended December 31, 2000 (highly preliminary) $ millions, unless indicated otherwise $ diluted EPS [The following information was depicted as a bar chart in the printed material.] [EPS data appears here.] (0.004) (0.000) (0.001) 0.008 0.006 (0.007) (0.001)
------------------------------------------------------------------------------------------------------- "Old" Thermo Thermo Thermo Thermo Metrika ONIX Thermo Thermo "New" Thermo Instrument Optek Quest BioAnalysis Systems Systems Spectra Vision Instrument Purchase price $51 $83 $189 $19 $24 $44 $12 $422 [EPS data appears here.]
JPMorgan THE BEACON GROUP 6 Pro forma balance sheet impact - -------------------------------------------------------------------------------- Pro forma as of December 31, 1999 (preliminary) $ billions "Old" Thermo Instrument Spin-ins "New" Thermo Instrument - -------------------------------------------------------------------------------- Cash $0.4 ($0.4) $0.0 Net op. assets 1.9 0.2 2.1 ----------------------------------------------------------- Total net assets $2.3 ($0.2) $2.1 Debt $1.0 $0.0 $1.1 Minority interest 0.2 (0.2) 0.0 Shareholders equity 1.0 0.0 1.0 ----------------------------------------------------------- Total capitalization $2.3 ($0.2) $2.1 Net debt/(cash)(1) $0.9 $1.1 - -------------------------------------------------------------------------------- (1) Includes minority interest Note: Numbers may not tie due to rounding JPMorgan THE BEACON GROUP 7 U.S. minority buy-out premia - -------------------------------------------------------------------------------- Premia(1) paid in U.S. minority buy-outs since 1988(2) [The following information was depicted as a bar chart in the printed material.] All transactions Premia paid (%) % of transactions - --------------- ----------------- LESS THAN 0% 4% 0% LESS THAN 10% 8% 10% LESS THAN 20% 30% 20% LESS THAN 30% 25% 30% LESS THAN 40% 5% 40% LESS THAN 50% 11% 50% LESS THAN 60% 7% 60% LESS THAN 70% 4% GREATER THAN 70% 7% Source: J.P. Morgan M&A Analysis Group, SDC (1) Premia based on stock price one week prior to announcement (2) Analysis of 101 U.S. minority buy-outs Comments o Median premium of 23%, average premium of 30% o 55% of premia paid in 10%-30% range o Transactions consisted of: - 25% stock - 71% cash - 4% combined cash-stock consideration o Deal sizes between $50MM and $4.8BN JPMorgan THE BEACON GROUP 8 Premia in cash vs. stock transactions - -------------------------------------------------------------------------------- Premia(1)paid in U.S. minority squeeze-outs since 1988(2) [The following information was depicted as a bar chart in the printed material.] Cash transactions Premia paid (%) % of transactions - --------------- ----------------- LESS THAN 0% 1% 0% LESS THAN 10% 6% 10% LESS THAN 20% 28% 20% LESS THAN 30% 26% 30% LESS THAN 40% 7% 40% LESS THAN 50% 11% 50% LESS THAN 60% 7% 60% LESS THAN 70% 6% GREATER THAN 70% 8% [The following information was depicted as a bar chart in the printed material.] Stock transactions Premia paid (%) % of transactions - --------------- ----------------- LESS THAN 0% 12% 0% LESS THAN 10% 16% 10% LESS THAN 20% 36% 20% LESS THAN 30% 16% 30% LESS THAN 40% 0% 40% LESS THAN 50% 12% 50% LESS THAN 60% 4% 60% LESS THAN 70% 0% GREATER THAN 70% 4% Source: J.P. Morgan M&A Analysis Group, SDC (1) Premia based on stock price one week prior to announcement (2) Analysis of 101 U.S. minority squeeze-outs JPMorgan THE BEACON GROUP 9 Premia analysis by size and free-float - -------------------------------------------------------------------------------- Premia(1) paid in minority buy-outs since 1988(2) Buy-outs by size $MM [The following information was depicted as a line chart in the printed material.] Premia paid (%) ------------------------------- Low Median High % of transactions > 1,000 20% 23% 124% 6% 500-1,000 (67%) 21% 37% 7% 250-500 (5%) 39% 227% 22% 100-250 1% 20% 113% 32% 0-100 (20%) 22% 90% 34% Buy-outs by free float % free float [The following information was depicted as a line chart in the printed material.] Premia paid (%) ------------------------------- Low Median High % of transactions 40%-50% (67%) 23% 227% 23% 30%-40% 12% 23% 79% 23% 20%-30% 2% 23% 90% 18% 10%-20% (12%) 22% 68% 31% 0%-10% (20%) 18% 39% 5% Source: J.P. Morgan M&A Analysis Group, SDC (1) Premia based on stock price one week prior to announcement (2) Analysis of 101 U.S. minority buy-outs JPMorgan THE BEACON GROUP 10 ONIX Systems - Share price performance - -------------------------------------------------------------------------------- Since IPO - ------------------------------------------- Summary statistics - ------------------------------------------- Current price (1/25/00) $7.81 1-month average $6.65 6-month average $5.91 1 year average $6.06 Average since IPO (3/25/98) $7.86 - ------------------------------------------- [The following information was depicted as a line chart in the printed material.] Volume (000s) Share Price ------------- ----------- 3/25/1998 770 $14.69 3/26/1998 354 $14.50 3/27/1998 362.9 $14.50 3/30/1998 354.1 $14.50 3/31/1998 57 $14.50 4/1/1998 48.6 $14.50 4/2/1998 31.4 $14.50 4/3/1998 73.3 $14.56 4/6/1998 70.5 $14.13 4/7/1998 70.8 $13.81 4/8/1998 14.2 $14.00 4/9/1998 9.2 $14.50 4/13/1998 15.3 $14.50 4/14/1998 7.7 $14.44 4/15/1998 56.2 $14.25 4/16/1998 6 $14.25 4/17/1998 6.7 $14.50 4/20/1998 30.2 $14.88 4/21/1998 82.3 $15.75 4/22/1998 23.9 $15.00 4/23/1998 12 $15.00 4/24/1998 6 $14.75 4/27/1998 12.1 $14.63 4/28/1998 115.3 $14.63 4/29/1998 4.9 $14.50 4/30/1998 16.1 $14.38 5/1/1998 1.4 $14.25 5/4/1998 7.1 $14.75 5/5/1998 16.5 $14.75 5/6/1998 14.3 $14.63 5/7/1998 1.7 $14.63 5/8/1998 4 $14.63 5/11/1998 1.3 $14.50 5/12/1998 7.3 $14.50 5/13/1998 8.1 $14.81 5/14/1998 9 $14.63 5/15/1998 5.3 $14.19 5/18/1998 1.6 $13.94 5/19/1998 9.6 $13.88 5/20/1998 6.2 $14.00 5/21/1998 1 $14.13 5/22/1998 4.6 $14.38 5/26/1998 26.7 $14.38 5/27/1998 4.8 $14.00 5/28/1998 11.2 $13.75 5/29/1998 0.6 $13.63 6/1/1998 43.6 $13.25 6/2/1998 13.6 $13.31 6/3/1998 27 $13.13 6/4/1998 1.8 $13.25 6/5/1998 2.2 $13.00 6/8/1998 1.8 $12.94 6/9/1998 0.8 $13.00 6/10/1998 2.1 $13.00 6/11/1998 5.7 $12.88 6/12/1998 0.4 $13.00 6/15/1998 4 $12.88 6/16/1998 11.6 $12.50 6/17/1998 12.5 $12.44 6/18/1998 0.4 $12.44 6/19/1998 7.9 $12.38 6/22/1998 0.8 $12.50 6/23/1998 0.5 $12.50 6/24/1998 25.6 $12.75 6/25/1998 3.9 $12.56 6/26/1998 #N/A $12.69 6/29/1998 10.9 $12.50 6/30/1998 9.9 $12.88 7/1/1998 2.2 $12.75 7/2/1998 2.4 $12.63 7/6/1998 2.1 $12.38 7/7/1998 2.1 $12.25 7/8/1998 11.2 $12.13 7/9/1998 0.3 $12.00 7/10/1998 0.5 $11.88 7/13/1998 #N/A $11.88 7/14/1998 3.2 $12.00 7/15/1998 #N/A $11.88 7/16/1998 1.2 $11.63 7/17/1998 22 $11.88 7/20/1998 0.9 $11.63 7/21/1998 11.5 $11.56 7/22/1998 6.7 $11.63 7/23/1998 9 $11.38 7/24/1998 16.2 $12.00 7/27/1998 2 $12.13 7/28/1998 #N/A $12.06 7/29/1998 0.2 $12.00 7/30/1998 0.5 $12.00 7/31/1998 #N/A $12.06 8/3/1998 3.3 $11.88 8/4/1998 11.5 $11.75 8/5/1998 2.2 $11.88 8/6/1998 4.1 $11.81 8/7/1998 0.6 $11.75 8/10/1998 #N/A $11.69 8/11/1998 2.3 $11.13 8/12/1998 9.4 $10.38 8/13/1998 20.4 $10.38 8/14/1998 8.2 $9.75 8/17/1998 0.5 $10.13 8/18/1998 0.2 $10.06 8/19/1998 6.7 $9.88 8/20/1998 0.5 $9.75 8/21/1998 #N/A $9.75 8/24/1998 2.5 $9.50 8/25/1998 0.1 $9.38 8/26/1998 8.9 $8.50 8/27/1998 2 $8.50 8/28/1998 18.1 $8.00 8/31/1998 5.7 $7.75 9/1/1998 12.6 $7.50 9/2/1998 0.9 $7.25 9/3/1998 1.1 $7.00 9/4/1998 0.8 $6.75 9/8/1998 13.4 $6.50 9/9/1998 0.8 $6.38 9/10/1998 0.6 $6.25 9/11/1998 255.6 $6.88 9/14/1998 21.3 $7.88 9/15/1998 49.2 $8.50 9/16/1998 0.7 $8.63 9/17/1998 #N/A $8.44 9/18/1998 1.6 $8.69 9/21/1998 1.4 $8.75 9/22/1998 0.4 $8.75 9/23/1998 10.5 $9.00 9/24/1998 4.2 $9.13 9/25/1998 1 $9.06 9/28/1998 57 $9.00 9/29/1998 0.2 $8.88 9/30/1998 493.6 $8.75 10/1/1998 6.3 $8.75 10/2/1998 98.7 $8.19 10/5/1998 214.6 $7.94 10/6/1998 8.2 $7.94 10/7/1998 232.1 $7.38 10/8/1998 184.6 $7.38 10/9/1998 7.6 $6.63 10/12/1998 110 $6.50 10/13/1998 0.7 $6.75 10/14/1998 143.9 $6.50 10/15/1998 41.1 $6.50 10/16/1998 #N/A $6.44 10/19/1998 0.3 $6.38 10/20/1998 1.9 $6.63 10/21/1998 #N/A $6.56 10/22/1998 44.5 $6.13 10/23/1998 8 $6.25 10/26/1998 0.2 $6.38 10/27/1998 157 $6.13 10/28/1998 6.1 $6.13 10/29/1998 212.2 $5.88 10/30/1998 5.4 $6.25 11/2/1998 10.4 $7.25 11/3/1998 13.4 $7.50 11/4/1998 2.3 $7.50 11/5/1998 0.6 $7.44 11/6/1998 5.1 $7.50 11/9/1998 0.2 $7.38 11/10/1998 3.7 $7.00 11/11/1998 255.6 $7.00 11/12/1998 8.6 $6.56 11/13/1998 0.2 $6.75 11/16/1998 5.1 $7.00 11/17/1998 3.7 $6.88 11/18/1998 4.5 $6.63 11/19/1998 3 $6.75 11/20/1998 8.5 $6.50 11/23/1998 17.6 $6.50 11/24/1998 0.9 $6.25 11/25/1998 0.6 $6.25 11/27/1998 0.1 $6.25 11/30/1998 11.1 $5.25 12/1/1998 60.7 $5.88 12/2/1998 5.5 $5.50 12/3/1998 19.5 $5.50 12/4/1998 3.7 $5.81 12/7/1998 10 $5.50 12/8/1998 2.9 $5.88 12/9/1998 20.4 $5.88 12/10/1998 1.6 $5.81 12/11/1998 1.8 $6.00 12/14/1998 4.6 $5.88 12/15/1998 0.2 $5.88 12/16/1998 1.4 $5.88 12/17/1998 4.2 $6.25 12/18/1998 12.3 $6.25 12/21/1998 4 $6.25 12/22/1998 3.6 $6.13 12/23/1998 17.9 $6.13 12/24/1998 #N/A $6.19 12/28/1998 1 $6.13 12/29/1998 5 $6.25 12/30/1998 16.8 $6.19 12/31/1998 2.7 $6.38 1/4/1999 8.2 $6.63 1/5/1999 0.1 $6.63 1/6/1999 9.3 $6.88 1/7/1999 138.3 $6.88 1/8/1999 3.8 $7.31 1/11/1999 5 $7.25 1/12/1999 118.8 $7.00 1/13/1999 24.2 $6.63 1/14/1999 3 $7.13 1/15/1999 2 $7.13 1/19/1999 14.5 $6.88 1/20/1999 1.5 $7.00 1/21/1999 3.1 $7.38 1/22/1999 1 $7.50 1/25/1999 4.3 $7.25 1/26/1999 3.8 $7.13 1/27/1999 #N/A $7.00 1/28/1999 20.1 $7.00 1/29/1999 0.7 $7.00 2/1/1999 #N/A $6.94 2/2/1999 #N/A $7.06 2/3/1999 1.3 $7.06 2/4/1999 0.6 $7.00 2/5/1999 1.8 $7.13 2/8/1999 1.1 $6.88 2/9/1999 #N/A $6.88 2/10/1999 #N/A $6.94 2/11/1999 #N/A $6.94 2/12/1999 1.9 $6.94 2/16/1999 1 $6.88 2/17/1999 2.7 $6.63 2/18/1999 2.2 $6.69 2/19/1999 #N/A $6.63 2/22/1999 18.7 $6.88 2/23/1999 0.1 $6.75 2/24/1999 #N/A $6.81 2/25/1999 1 $6.88 2/26/1999 0.6 $6.88 3/1/1999 5.7 $6.88 3/2/1999 5.4 $6.75 3/3/1999 0.5 $6.63 3/4/1999 1 $6.63 3/5/1999 0.5 $6.50 3/8/1999 0.2 $6.44 3/9/1999 0.7 $6.31 3/10/1999 3.5 $6.13 3/11/1999 8.8 $6.13 3/12/1999 0.2 $6.00 3/15/1999 1 $6.13 3/16/1999 1.3 $5.75 3/17/1999 2.7 $5.88 3/18/1999 5.6 $5.63 3/19/1999 #N/A $5.50 3/22/1999 6.8 $6.00 3/23/1999 3.2 $6.50 3/24/1999 3 $6.00 3/25/1999 1 $5.88 3/26/1999 1 $5.63 3/29/1999 11.4 $5.50 3/30/1999 5.7 $5.50 3/31/1999 1.6 $5.38 4/1/1999 2.4 $5.44 4/5/1999 0.6 $5.38 4/6/1999 5.9 $5.25 4/7/1999 #N/A $5.38 4/8/1999 0.4 $5.38 4/9/1999 14.7 $6.13 4/12/1999 8.3 $5.94 4/13/1999 0.1 $6.00 4/14/1999 0.5 $5.63 4/15/1999 10.4 $5.88 4/16/1999 5.6 $5.88 4/19/1999 0.8 $5.75 4/20/1999 #N/A $5.81 4/21/1999 #N/A $5.81 4/22/1999 #N/A $5.81 4/23/1999 #N/A $5.81 4/26/1999 0.2 $5.63 4/27/1999 #N/A $5.56 4/28/1999 3 $5.38 4/29/1999 19.2 $5.13 4/30/1999 2.6 $5.50 5/3/1999 0.5 $5.50 5/4/1999 0.5 $5.75 5/5/1999 0.2 $5.75 5/6/1999 #N/A $5.88 5/7/1999 8.2 $6.13 5/10/1999 1 $6.00 5/11/1999 4.2 $6.00 5/12/1999 27 $6.50 5/13/1999 7.5 $6.25 5/14/1999 4.3 $6.19 5/17/1999 0.2 $6.13 5/18/1999 2 $6.19 5/19/1999 0.5 $5.94 5/20/1999 15 $6.00 5/21/1999 31.5 $6.50 5/24/1999 19.9 $6.50 5/25/1999 17.5 $6.63 5/26/1999 29.5 $7.13 5/27/1999 1.2 $6.88 5/28/1999 1.1 $7.00 6/1/1999 11 $6.75 6/2/1999 1 $7.00 6/3/1999 #N/A $6.94 6/4/1999 4.5 $6.50 6/7/1999 0.3 $6.50 6/8/1999 2.2 $6.63 6/9/1999 0.2 $6.69 6/10/1999 4.6 $6.88 6/11/1999 2.7 $6.88 6/14/1999 #N/A $6.88 6/15/1999 7.9 $6.56 6/16/1999 0.6 $6.50 6/17/1999 7 $6.50 6/18/1999 0.1 $6.38 6/21/1999 13.5 $5.75 6/22/1999 2 $5.63 6/23/1999 10 $5.56 6/24/1999 1.3 $5.63 6/25/1999 4.2 $6.13 6/28/1999 2.2 $5.94 6/29/1999 9 $6.00 6/30/1999 0.2 $6.00 7/1/1999 6 $5.75 7/2/1999 #N/A $5.88 7/6/1999 #N/A $5.81 7/7/1999 13.2 $5.88 7/8/1999 #N/A $5.81 7/9/1999 18.7 $6.38 7/12/1999 #N/A $6.25 7/13/1999 14.8 $6.63 7/14/1999 1.5 $6.50 7/15/1999 2.7 $6.50 7/16/1999 1 $6.50 7/19/1999 6.7 $7.00 7/20/1999 1.6 $6.75 7/21/1999 #N/A $6.63 7/22/1999 #N/A $6.63 7/23/1999 1 $6.50 7/26/1999 #N/A $6.50 7/27/1999 0.7 $6.38 7/28/1999 0.1 $6.38 7/29/1999 #N/A $6.31 7/30/1999 1.7 $6.25 8/2/1999 1 $6.25 8/3/1999 #N/A $6.38 8/4/1999 2.2 $6.25 8/5/1999 0.4 $6.38 8/6/1999 1.4 $6.13 8/9/1999 #N/A $6.13 8/10/1999 #N/A $6.19 8/11/1999 0.1 $6.06 8/12/1999 #N/A $6.19 8/13/1999 #N/A $6.19 8/16/1999 1.2 $6.00 8/17/1999 0.2 $6.00 8/18/1999 3 $6.00 8/19/1999 4.6 $6.00 8/20/1999 2.3 $5.94 8/23/1999 11.5 $6.00 8/24/1999 #N/A $6.00 8/25/1999 #N/A $6.00 8/26/1999 0.3 $6.13 8/27/1999 #N/A $6.13 8/30/1999 1.7 $5.88 8/31/1999 1 $6.00 9/1/1999 #N/A $6.06 9/2/1999 1.3 $6.06 9/3/1999 3.2 $6.00 9/7/1999 #N/A $6.06 9/8/1999 #N/A $6.06 9/9/1999 3 $6.00 9/10/1999 #N/A $5.94 9/13/1999 #N/A $5.94 9/14/1999 #N/A $5.94 9/15/1999 #N/A $5.94 9/16/1999 3 $6.00 9/17/1999 #N/A $5.94 9/20/1999 0.4 $5.94 9/21/1999 0.3 $5.94 9/22/1999 #N/A $5.94 9/23/1999 0.4 $5.88 9/24/1999 2.2 $5.88 9/27/1999 2.5 $5.88 9/28/1999 7 $5.75 9/29/1999 3.7 $5.63 9/30/1999 1.7 $5.56 10/1/1999 4.5 $5.50 10/4/1999 1.3 $5.56 10/5/1999 5.1 $5.50 10/6/1999 8 $5.25 10/7/1999 8.9 $5.13 10/8/1999 8.6 $5.31 10/11/1999 0.8 $5.25 10/12/1999 7.7 $5.00 10/13/1999 19 $4.50 10/14/1999 8.6 $4.50 10/15/1999 5.5 $4.75 10/18/1999 14 $4.50 10/19/1999 5 $4.69 10/20/1999 9.8 $4.63 10/21/1999 29.2 $4.69 10/22/1999 0.2 $4.75 10/25/1999 12.5 $4.75 10/26/1999 122.7 $5.00 10/27/1999 1.2 $5.25 10/28/1999 5.7 $6.25 10/29/1999 13.5 $5.75 11/1/1999 10.1 $5.25 11/2/1999 3.8 $5.13 11/3/1999 0.8 $5.25 11/4/1999 18.1 $5.88 11/5/1999 0.5 $5.88 11/8/1999 28.7 $5.88 11/9/1999 #N/A $5.75 11/10/1999 1.7 $5.63 11/11/1999 23.7 $5.75 11/12/1999 1.1 $5.63 11/15/1999 4.6 $5.63 11/16/1999 4.2 $5.63 11/17/1999 25.2 $5.50 11/18/1999 33.8 $5.63 11/19/1999 1.5 $5.75 11/22/1999 #N/A $5.75 11/23/1999 #N/A $5.75 11/24/1999 #N/A $5.75 11/26/1999 #N/A $5.69 11/29/1999 3.8 $6.00 11/30/1999 0.6 $5.88 12/1/1999 #N/A $5.75 12/2/1999 1.8 $5.63 12/3/1999 0.2 $5.63 12/6/1999 25.8 $5.38 12/7/1999 7 $5.38 12/8/1999 8.5 $5.25 12/9/1999 3 $5.38 12/10/1999 0.1 $5.25 12/13/1999 3.5 $5.50 12/14/1999 1 $5.75 12/15/1999 10.3 $5.75 12/16/1999 0.1 $5.75 12/17/1999 0.1 $5.63 12/20/1999 5 $5.25 12/21/1999 39.4 $5.38 12/22/1999 4.4 $5.50 12/23/1999 5.4 $5.38 12/27/1999 18.2 $5.38 12/28/1999 19 $5.00 12/29/1999 42.6 $5.06 12/30/1999 91.4 $5.50 12/31/1999 11.6 $6.13 1/3/2000 8.8 $6.50 1/4/2000 4.6 $6.31 1/5/2000 16.4 $6.50 1/6/2000 #N/A $6.38 1/7/2000 1.7 $6.25 1/10/2000 #N/A $6.25 1/11/2000 4.8 $6.50 1/12/2000 2.1 $6.50 1/13/2000 12.4 $7.13 1/14/2000 27.2 $7.50 1/18/2000 7.5 $7.63 1/19/2000 17.8 $8.00 1/20/2000 8.5 $7.88 1/21/2000 3.1 $7.75 1/24/2000 0.3 $7.75 1/25/2000 #N/A $7.81 JPMorgan THE BEACON GROUP 11 ONIX Systems - Historical trading statistics - -------------------------------------------------------------------------------- [The following information was depicted as a bar chart in the printed material.] Since IPO Volume (shares Cumulative Trading volume as % total MM) ---------- ------------------------- ------- $4.00-$6.50 21.7% 21.7% 2.1 $6.50-$9.00 48.9% 27.2% 2.6 $9.00-$11.50 50.2% 1.3% 0.1 $11.50-$14.00 54.3% 4.1% 0.4 $14.00-$16.50 100.0% 45.7% 4.4 ------- 9.7 [The following information was depicted as a bar chart in the printed material.] Last twelve months Volume (shares Cumulative Trading volume as % total MM) ---------- ------------------------- ------- $4.50-$5.25 27.6% 27.6% 0.4 $5.25-$6.00 64.8% 37.2% 0.5 $6.00-$6.75 85.8% 21.0% 0.3 $6.75-$7.50 95.6% 9.8% 0.1 $7.50-$8.25 100.0% 4.4% 0.1 ------- 1.5 JPMorgan THE BEACON GROUP 12 ONIX Systems - Shareholder profile(1) - -------------------------------------------------------------------------------- IPO: 3/25/98 Shares held (000) ----------------------------------- % Shareholder 9/30/99 outstanding 6/30/98 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Thermo Instrument(2) 11,524.9 76.7% Octopus(2) 294.3 2.0% Directors and executives(3) 315.5 2.1% - -------------------------------------------------------------------------------- Total insiders 12,134.6 80.8% Wanger Asset Management, L.P. 266.1 1.8% 266.1 Pecks Management Ptnr. 210.5 1.4% Brundage, Story and Rose, LLC 121.4 0.8% Wellington Management Co., LLP 118.5 0.8% Loeb Arbitrage Mgmt. Inc. 79.7 0.5% Barclays Bank PLC 54.8 0.4% Aberdeen Asset Management PLC 23.3 0.2% Mellon Private Asset Mgmt. 21.8 0.1% 408.0 Vanguard Group 3.0 0.0% Charles Schwab Investment Mgmt. 2.5 0.0% ----------------------------------- Top 10 institutions 901.7 6.0% Other institutional holders 86.6 0.6% ---------------------- Total institutional holdings 988.2 6.6% General public 1,893.7 12.6% ====================== Total shares outstanding(4) 15,016.5 100.0% 16,265.3 - -------------------------------------------------------------------------------- Current price (1/25/00) $7.81 Average price(5) 6.34 13.93 Minimum price(5) 5.13 12.38 Maximum price(5) 8.75 15.75 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- (1) Source: CDA Spectrum (2) From November budget (3) From 5/27/99 Proxy; including options (4) Includes options (5) 12 months ending 9/30 and 6/30 JPMorgan THE BEACON GROUP 13 ONIX - 92700 - -------------------------------------------------------------------------------- $ millions
- ----------------------------------------------------------------------------------------------- Valuation Summary - ----------------------------------------------------------------------------------------------- Value Range Per Share Implied Premium Low High Low High Low High --- ---- --- ---- --- ---- DCF $69 $81 $7.38 $8.18 -2% 9% 7.1x 8.2x Trading 85 100 $8.47 $9.51 13% 27% (1999) '00 Imp. Sales Multiple 0.6x 0.7x 0.6x 0.7x '00 Imp. EBITDA Multiple 6.0x 7.1x 8.7x 10.2x Transaction 75 100 $7.77 $9.51 4% 27% '00 Imp. Sales Multiple 0.5x 0.7x 0.5x 0.7x '00 Imp. EBITDA Multiple 5.3x 7.1x 7.7x 10.2x Overall FV 80 95 $8.12 $9.17 8% 22% '00 Imp. Sales Multiple 0.6x 0.7x 0.6x 0.7x '00 Imp. EBITDA Multiple 5.7x 6.7x 8.2x 9.7x Less: Net Debt (37) (37) ------------------------ ---- ---- ----- ----- Overall EV $117 $132 $8.12 $9.17 Less: Tax Leakage 0 0 $0.00 $0.00 ------------------------ ---- ---- ----- ----- Net Value - Overall $117 $132 $8.12 $9.17 Net Value -TMO $84 $95 - -----------------------------------------------------------------------------------------------
- --------------------------------------------------- Market Information - --------------------------------------------------- Total Octopus ----- ------- Stock Price $7.50 $7.50 # of Shares 14 10 Options 1 Strike $11.24 FD shares 14 Equity Value 108 78 Net Debt (37) ------------------- ------ Firm Value 71 - --------------------------------------------------- - --------------------------------------------------- Tax Basis - --------------------------------------------------- Divest (1= yes, 0= no) 0 Tax Basis 100 Tax Rate on Gains 40% - ---------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------- Trading Comparables - ----------------------------------------------------------------------------------------------------------------------- Equity Value Firm Value ------------- ------------------------------------------- Share prices as of: 1/25/00 Equity Firm Net Income 1999 2000 Long Term Value Value 1999E 2000E Sales EBITDA EBIT Sales EBITDA EBIT Growth Rate ----- ----- ----- ----- ----- ------ ---- ----- ------ ---- ----------- Milltronics Ltd(1) $124 $118 23.0x 17.5x 1.4x 13.8x 22.1x NA NA NA NA Roxbury Group PLC $212 $232 10.6x 9.1x 1.2x 7.4x 9.2x 1.1x 5.8x 6.9x NA Moore Products Co(2) $126 $124 28.6x NA 0.7x 13.0x 24.2x NA NA NA NA Median 23.0x 13.3x 1.2x 13.0x 22.1x 1.1x 5.8x 6.9x #NUM! Company Financials 3 6 $139 10 $6 139 14 9 Implied Valuation - FV 69 73 173 128 124 147 82 65 Market Valuation $108 $71 23.6x 12.9x 0.5x 7.3x 12.7x 0.5x 5.0x 7.5x - -----------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------- Transaction Comparables - --------------------------------------------------------------------------------------------------------------------------------- LTM Consideration Equity Firm Value ----------------- ---------- --------------------------- Equity Firm Net Income Sales EBITDA EBIT ------ ---- ---------- ----- ------ ---- Jan-00 Milltronics / Siemens $233 $232 51.3x 2.7x 27.2x 43.4x Jan-00 Moore Products / Siemens $170 $167 77.1x 1.0x 17.6x 32.6x Dec-99 Mobrey / Roxboro $36 $36 NM 0.7x NM NM Dec-99 Drexelbrook Engineering Co. / AMETEK $25 $25 NM 0.8x NM NM Jun-99 TSI Inc. / Investor Group $179 $188 19.3x 2.0x 10.7x 13.2x Jun-99 Environmental Systems Corp / TSI Inc $25 $25 13.2x 1.1x NM 7.9x Dec-98 Inframetrics / FLIR Systems $49 $70 93.6x 1.3x 19.2x 26.0x Jul-98 Unit Instruments Inc. / United States Filter Corp. $49 $41 NM 0.8x 18.2x NM May-98 Data Measurement / Metrika Systems $29 $29 NM 0.8x NM NM Apr-98 Granville-Phillips Co. / Helix Technology Corp. $47 $42 19.4x 1.6x 13.6x 17.4x Mar-98 Phase Shift Technology Inc. / ADE Corp. $32 $28 13.9x 2.3x NA 7.6x Oct-97 Computational Systems Inc. / Emerson Electric Co. $159 $160 38.6x 2.6x 17.5x 25.7x Jul-97 Gems Sensors / Danaher Corp. $85 $88 16.9x 1.1x NA 14.3x Oct-97 BIE Technologies Inc. / Shareholders $91 $119 30.2x 1.2x 9.6x 18.5x Jun-97 Numar Corp. / Halliburton Co. $333 $342 505.9x 15.3x 65.2x 472.5x May-97 Petrotech Inc, / Roper Industries $13 $22 NM 0.7x NM NM Apr-97 John Chatillon & Sons, Lloyd / AMETEK Inc. $34 $34 NM NM NM NM Jan-97 Measurex Corp./Honeywell Inc. $566 $553 15.3x 1.3x 7.8x 10.1x Feb-96 Span Instruments / Tylan General Inc. $16 $37 NM 0.8x 140.1x NM Feb-96 Semiconductor Systems Inc. / FSI International $21 $25 11.0x 0.8x 7.2x NM Jan-96 Met One Inc. / Pacific Scientific Co. $23 $26 24.4x 1.7x 13.0x 13.9x Median 21.9x 1.1x 17.5x 17.4x Company Financials 3 139 10 6 Implied Valuation - FV 66 159 172 98 - ---------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------- Financial Information - ----------------------------------------------------------------------------------------------------------------------- CAGR 1998 1999 2000 2001 2002 2003 2004 00-04 ----- ----- ----- ----- ----- ----- ----- ----- Sales $154 $139 $139 $143 $147 $152 $156 3% % growth 26% (10%) 0% 3% 3% 3% 3% EBITDA 17 10 14 14 15 15 16 3% % margin 11% 7% 10% 10% 10% 10% 10% EBIT $13 $6 $9 $10 $10 $11 $11 4% % margin 8.2% 4.0% 6.8% 6.9% 7.0% 7.1% 7.2% Non-tax ded amortization 2 2 2 2 2 2 2 Taxes 5 3 4 4 4 4 5 - ----------------------------- ----- ----- ----- ----- ----- ----- ----- EBIAT $9 $5 $7 $8 $8 $8 $9 4% Plus: depreciation 3 2 3 3 3 3 2 Less: CapEx 1 4 2 2 2 2 2 % of sales 1% 3% 2% 2% 2% 2% 2% Deferred taxes 1 0 0 0 0 0 0 Other cash flows for valuation 0 0 0 0 0 0 0 (Increase) in NWI (7) 3 2 (1) (1) (1) (1) - ----------------------------- ----- ----- ----- ----- ----- ----- ----- Free cash flows $4 $6 $10 $7 $7 $7 $7 -8% - -----------------------------------------------------------------------------------------------------------------------
- ------------------------------------------- DCF Valuation (firm value) - ------------------------------------------- Sales g 1.00% 1.50% 2.00% - ------------------------------------------- WACC ---------------------------- 11.0% $76 $78 $81 11.5% $72 $75 $77 12.0% $69 $71 $73 - ------------------------------------------- - ---------------------------------------- DCF Valuation (per share) - ---------------------------------------- Sales g 1.00% 1.50% 2.00% - ---------------------------------------- WACC --------------------------- 11.0% $7.82 $7.99 $8.18 11.5% $7.59 $7.74 $7.90 12.0% $7.38 $7.51 $7.66 - ---------------------------------------- (1) closing price as of 1/14/00 (2) closing price as of 1/7/00 14 -----END PRIVACY-ENHANCED MESSAGE-----