-----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, OG6q/zPRcw8JSGwdBSmwxqH1FcsdQLNr1dRP94l304kO1wR3JxdiyW8tFPgFgMnM 7M5worWogl9k5iUGLSnDuw== /in/edgar/work/0000950135-00-004508/0000950135-00-004508.txt : 20001006 0000950135-00-004508.hdr.sgml : 20001006 ACCESSION NUMBER: 0000950135-00-004508 CONFORMED SUBMISSION TYPE: 425 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20001005 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: APPLIED SCIENCE & TECHNOLOGY INC CENTRAL INDEX KEY: 0000912842 STANDARD INDUSTRIAL CLASSIFICATION: [3559 ] IRS NUMBER: 042962110 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 425 SEC ACT: SEC FILE NUMBER: 333-71467 FILM NUMBER: 735178 BUSINESS ADDRESS: STREET 1: 35 CABOT RD CITY: WOBURN STATE: MA ZIP: 01801 BUSINESS PHONE: 6179335560 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: MKS INSTRUMENTS INC CENTRAL INDEX KEY: 0001049502 STANDARD INDUSTRIAL CLASSIFICATION: [3823 ] IRS NUMBER: 042277512 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 425 BUSINESS ADDRESS: STREET 1: SIX SHATTUCK RD CITY: ANDOVER STATE: MA ZIP: 01810 BUSINESS PHONE: 9789752350 MAIL ADDRESS: STREET 1: SIX SHATTUCK ROAD STREET 2: ATTN: CORPORATE ACCOUNTING CITY: ANDOVER STATE: MA ZIP: 01810 425 1 b36950mke425.txt MKS INSTRUMENTS, INC. 1 Filed by: MKS Instruments, Inc. Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 of the Securities Exchange Act of 1934 Subject Company: Applied Science and Technology, Inc. Exchange Act File No. 0-22646 MKS Instruments, Inc. Around the Process... Around the World... Strategic Acquisition of ASTeX, October, 2000 1 2 Safe Harbor Passage This presentation may contain forward-looking statements that are made under the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements are estimates which involve risks and uncertainties. Actual results may vary significantly from those stated in forward-looking statements. Further information regarding risk factors can be found in the Companies' filings with the Securities and Exchange Commission. 2 3 John Bertucci Chairman & CEO MKS Instruments 3 4 Transaction Summary [ ] $300M acquisition of ASTeX [ ] 100% Stock and assumption of debt/cash [ ] Ownership [ ] 70% MKS Instruments [ ] 30% ASTeX [ ] Exchange Ratio [ ] 0.7669 MKSI shares per ASTeX common share [ ] Pooling of interests [ ] Expected Closing: December 2000 4 5 Complementary Technologies ... Integrated Solutions [MKS logo omitted] [ ] #1 supplier of gas process control instruments to semiconductor OEMs and Fabs [ ] Market Value ~$700M [ ] 30 years of consecutive profitability, revenue CAGR 18% for 20 years [ ] World-class global infrastructure [ASTeX logo omitted] [ ] #1 supplier of reactive gas solutions to semiconductor OEMs [ ] Market Value ~$210M [ ] 5-years revenue CAGR 48% (3x industry growth rate) [ ] Broad, deep, technically experienced management team 5 6 Strong Strategic Fit Around the Process [Diagram of process chamber including the following MKS products: Specialty gases flowing through Mass-Flo(R) Gas Panel Instruments Gas Box Instruments Materials Delivery System Control Valve Shut-off Valve Process Monitor Baratron(R) Pressure Measurement Adaptive Controller HPS(R) Vacuum Components/Subsystems] [Diagram of process chamber described above, adding on each of the following ASTeX products: Ozone Generator ASTRON Reactive Gas Generators Power Generators] 6 7 Strategic Rationale [ ] One-stop Solution Leader [ ] Most comprehensive product offering [ ] Strengthens Competitive Positioning [ ] Integrated solutions leader [ ] Most comprehensive offering [ ] Enhanced critical mass [ ] Complementary core technologies [ ] Builds on leading global infrastructure [ ] Revenue Synergy Upside [ ] 100% complementary product offerings [ ] Cross-selling opportunities 7 8 Strategic Rationale [ ] Strong Financial Position [ ] $388 million in revenues (Combined companies, LTM) [ ] $157 million cash (Combined companies, June 30, 2000) [ ] Positioned for additional acquisitions [ ] Accretive to MKS' earnings (without synergies) [ ] Cost Synergy Upside [ ] Leverage global infrastructure [ ] Leverage MKS' lean manufacturing [ ] Leverage supply chain management [ ] Leverage R&D investment [ ] Enhanced Growth Platform [ ] Depth of combined management team and technology [ ] Complementary core competencies [ ] Strong geographical and cultural fit 8 9 Critical Process Technologies [First part of diagram shows the following semiconductor processes: RTP Etch Epi Ion Implant SEM Diffusion Vacuum Processes Strip PVD CVD] 'virtually every chip in the world is made with MKS' products' [Diagram shows the following semiconductor processes: RTP Etch Ion Implant Strip CVD Clean] 'virtually every chip in the world is made with ASTeX products' [Second part of diagram shows applications, other than semiconductor, which are made using the same process, specifically Flat Panel Displays Micro-Machined Devices Magnetic/Optical Storage Media MRI Freeze Dried Pharmaceuticals LEDs Optical Filters & Fibers Sterilized Medical Instruments Solar Cells Lasers] [Third part of diagram shows the growing markets that use these products, specifically Telecommunications Internet Infrastructure Consumer Electronics Pharmaceutical & Medical PCs Automotive Electronics] 9 10 MKS Core Products Around the Process [Diagram of process chamber including the following MKS products: Specialty gases flowing through Mass-Flo(R) Gas Panel Instruments Gas Box Instruments Materials Delivery System Control Valve Shut-off Valve Process Monitor Baratron(R) Pressure Measurement Adaptive Controller HPS(R) Vacuum Components/Subsystems] [Diagram of process chamber described above, adding on each of the ASTeX products: Power Generators ASTRON Reactive Gas Generators Ozone Generator] 10 11 Product Integration Around the Process [Diagram of process chamber including the following integrated products: Integrated Vapor delivery Digital control network Integrated wafer power & cooling Integrated vacuum foreline cleaning] 11 12 Comprehensive Product Offerings [Pictures of the following products omitted [ ] Pressure Measurement and Control Products [ ] Vacuum Products [ ] Materials Delivery & Analysis Products [ ] ASTeX Products [ ] Integrated Subsystems] 12 13 Customer & Market Diversity 4,000+ Active Customers Worldwide
Semiconductor Capital Equipment Semiconductor Manufacturers - --------------------------------------- ----------------------------------------------------------- [ ] Applied [ ] Lam Research [ ] AMD [ ] Mitsubishi [ ] ST Materials Microelectronics [ ] ASM [ ] Novellus [ ] Fujitsu [ ] Motorola [ ] Siemens [ ] Axcelis [ ] PSK [ ] Hitachi [ ] National Semi [ ] TI [ ] Gasonics [ ] Quester [ ] Hyundai [ ] NEC [ ] Toshiba [ ] Genus [ ] Semitool [ ] IBM [ ] Philips [ ] TSMC [ ] Hitachi [ ] SVS [ ] Intel [ ] Samsung [ ] UMC [ ] Jusung [ ] Tokyo Electron [ ] Micron [ ] ULVAC [ ] Varian
Specialty Data Storage and FPD Gas Suppliers Diverse Vacuum Processes - ---------------------------- ----------------- ------------------------------------ [ ] AKT [ ] NEC [ ] Air Liquide [ ] Abbott [ ] GE Labs [ ] Alcatel [ ] Seagate [ ] Air [ ] Delco [ ] Johnson & Johnson Products [ ] Anelva [ ] Sharp [ ] BOC [ ] Ford [ ] OSRAM [ ] CVC [ ] Toshiba [ ] Kinetics [ ] Westinghouse [ ] Komag [ ] Unaxis [ ] Nippon Sanso [ ] Lucent [ ] Veeco [ ] Praxair
13 14 Top 10 Customers (LTM) MKS ASTeX Combined - ------------------------------------------------------------------- Applied Materials Applied Materials Applied Materials Axcelis Chipbond Chipbond Hitachi FSI Gasonics Intel Gasonics Lam Lam J & J Novellus Motorola Lam Philips Med. Novellus Philips Med. SVG Samsung SVG TEL TEL Ulvac Ulvac Ulvac Varian Varian 14 15 Leaders in Growing Market [Pie chart showing total available market, served market and MKS and ASTeX shares of served market] Served Market ~$750M (1999) MKS ~25% Served Market ~$1450M (1999) [Pie chart indicates MKS and ASTeX portion of market] Total Market Around the Process ~$3.5bn (1999) ~$5.5bn (2000) est. [Pie chart indicates MKS and ASTeX portion of market] Source: AVEM, SEMI, Company Estimates 15 16 Competition
- ------------------------------------------------------------------------------------------------ Pressure Measurement & Vacuum Reactive Gas Power Control Materials Delivery and Analysis Products Generators Generators - --------------- ------------------------------- ------------- ------------- ---------------- Flow Control Gas Analysis - --------------- --------------- -------------- ------------- ------------- ---------------- [ ] MKS [ ] MKS [ ] MKS [ ] MKS [ ] ASTeX [ ] ASTeX - --------------- --------------- -------------- ------------- ------------- ---------------- [ ] Millipore [ ] Aera [ ] Inficon [ ] Edwards [ ] AE [ ] AE - --------------- --------------- -------------- ------------- ------------- ---------------- [ ] Millipore [ ] * Spectra [ ] Helix [ ] Ebara [ ] Analogic - --------------- --------------- -------------- ------------- ------------- ---------------- [ ] STEC [ ] Inficon [ ] Sumitomo [ ] Daihen - --------------- --------------- -------------- ------------- ------------- ---------------- [ ] Unit [ ] MDC [ ] ENI Instruments - --------------- --------------- -------------- ------------- ------------- ---------------- [ ] Nor-Cal - --------------- --------------- -------------- ------------- ------------- ---------------- [ ] Varian - --------------- --------------- -------------- ------------- ------------- ----------------
* Acquired by MKS 16 17 Unique Competitive Position
VACUUM VACUUM SUB- DIGITAL PRESSURE FLOW MONITOR COMP GAUGE SYSTEMS NETWORK - ------------------------------------------------------------------------------------------------------- MKS X X X X X X X - ------------------------------------------------------------------------------------------------------- Aera X - ------------------------------------------------------------------------------------------------------- Edwards X X - ------------------------------------------------------------------------------------------------------- Helix X - ------------------------------------------------------------------------------------------------------- Inficon X X X - ------------------------------------------------------------------------------------------------------- MDC X - ------------------------------------------------------------------------------------------------------- Millipore X X - ------------------------------------------------------------------------------------------------------- Nor-Cal X - ------------------------------------------------------------------------------------------------------- STEC X - ------------------------------------------------------------------------------------------------------- Unit X - ------------------------------------------------------------------------------------------------------- Varian X X - -------------------------------------------------------------------------------------------------------
RF DC uW REACTIVE SYS. OZONE LIQUOZONE POWER POWER POWER GAS INTEGRATION - ------------------------------------------------------------------------------------------------------- ASTeX X X X X X X X - ------------------------------------------------------------------------------------------------------- Aera - ------------------------------------------------------------------------------------------------------- Edwards - ------------------------------------------------------------------------------------------------------- Helix - ------------------------------------------------------------------------------------------------------- Inficon - ------------------------------------------------------------------------------------------------------- MDC - ------------------------------------------------------------------------------------------------------- Millipore - ------------------------------------------------------------------------------------------------------- Nor-Cal - ------------------------------------------------------------------------------------------------------- STEC - ------------------------------------------------------------------------------------------------------- Unit - ------------------------------------------------------------------------------------------------------- Varian - ------------------------------------------------------------------------------------------------------- AE X X X - ------------------------------------------------------------------------------------------------------- Analogic X - ------------------------------------------------------------------------------------------------------- Daihen X X - ------------------------------------------------------------------------------------------------------- Ebara X X - ------------------------------------------------------------------------------------------------------- ENI X X - ------------------------------------------------------------------------------------------------------- Sumitomo X X - -------------------------------------------------------------------------------------------------------
Source: Company estimates of market participants with share >5%. 17 18 Established Global Infrastructure [Diagram of world showing locations of MKS and ASTeX facilities.] [ ] 12 Manufacturing Facilities [ ] 22 Customer Support Centers [ ] Provides SG&A Leverage [ ] ASTeX Locations 18 19 Richard Post, Ph.D Chairman & CEO ASTeX 19 20 ASTeX Growth Drivers [ ] Increased customer reliance on suppliers for value-add [ ] Higher level of integration [ ] Increased outsourcing by semiconductor equipment OEMs [ ] New etch and deposition systems increase available market 20 21 ASTeX semiconductor equipment subsystems [ ] Reactive gas products for deposition, etch and cleaning [ ] RF, DC and microwave power sources [ ] Semiconductor [ ] Medical [ ] Lasers/Optoelectronics [Pictures of the following ASTeX subsystems omitted ASTRON(R) Ozone Microwave RF] 21 22 ASTeX product line expansion accelerates revenue growth [Graphical display of revenue growth from $8.4m FY in 1993 to $140m (LTM) in 2000 indicating the year in which the following products were introduced RF generator Orbital planetary PVD PVD system Single chamber etch/CVD Batch reactor etch Microwave match Microwave applicator set CPS microwave Microwave OEM Microwave ASTRON abatement ASTRON chamber clean 4 channel RF/microwave 300 mm ozone generator Low dopant ozone Dissolved ozone Integrated ozone delivery Semozon Ozone generator] 22 23 ASTeX expanding customer base [Graphical display of the years 1992 to 2000 in which the development and production of products occurred for the following major customers DNS TEL ASM, JuSung, others PSK Novellus Lam SVG, Quester Ulvac GaSonics Applied Materials] 23 24 Case study: ASTeX Penetration at Applied Materials [Graphical display of the years 1992 to 2000 in which development and production occurred for Applied Materials relative to the following chambers Chamber #1 Chamber #2 300 mm Chamber Clean Deposition Chamber #3 Chamber Clean Deposition Chamber #4 Chamber #5 Chamber Clean Deposition Chamber #6 Chamber #7 Chamber #8] 24 25 Ron Weigner VP & CFO MKS Instruments 25 26 Key Financial Statistics (LTM, June 30, 2000/$M)
- ---------------------- ------------ ------------- --------------- MKS ASTeX Combined - ---------------------- ------------ ------------- --------------- Revenue $248.2 $139.9 $388.1 - ---------------------- ------------ ------------- --------------- EBIT 50.7 19.4 70.0 - ---------------------- ------------ ------------- --------------- Pro Forma Net Income 33.1 14.0 47.1 - ---------------------- ------------ ------------- --------------- Shareholder's Equity 154.3 159.1 313.4 - ---------------------- ------------ ------------- ---------------
[ ] Slightly accretive without synergies 26 27 Combined Capitalization (June 30, 2000/$M)
- ---------------------- ------------- -------------- ------------ MKS ASTeX Combined - ---------------------- ------------- -------------- ------------ Debt $29.3 $9.6 $38.9 - ---------------------- ------------- -------------- ------------ Equity 154.3 159.1 313.4 - ---------------------- ------------- -------------- ------------ Cash 65.8 91.2 157.0 - ---------------------- ------------- -------------- ------------ Current Market Value 700 210 910 - ---------------------- ------------- -------------- ------------
Source: Financials as of June 30, 2000, Market Value as of September 29, 2000 27 28 Combined Management Strength
Career Years - ------------------ ----------------------------------------------------------- John Bertucci Chairman, CEO 35 Peter Younger President, COO 25 Ronald Weigner Vice President, CFO 32 William Stewart Corporate VP/GM, Vacuum Products 30 Joseph Maher Corporate VP/GM, Pressure Measurement/Control 26 Robert Klimm Corporate VP/GM, Materials Delivery/Analysis 24 Leo Berlinghieri Corporate VP, Customer Support Operations 24 Donald Smith Corporate VP, Chief Technical Officer 13 Gerald Colella Corporate VP, Business Operations 23 Paul Blackborow Corporate VP, Marketing 18 - ------------------ ----------------------------------------------------------- Dick Post Chairman, CEO 27 John Ross President, COO 30 Bill Hurley Sr. Vice President, CFO 32 Jack Schuss Vice President, Engineering 23 Stanley Burg Sr. Vice President, Systems 35
28 29 Summary [ ] One-stop Solution Leader [ ] Strengthens Competitive Positioning [ ] Revenue Synergy Upside [ ] Strong Financial Position [ ] Cost Synergy Upside [ ] Enhanced Growth Platform 29 30 MKS Instruments, Inc. Around the Process... Around the World... These documents and amendments to these documents have or will be filed with the United States Securities and Exchange Commission. When these and other documents are filed with the SEC, they may be obtained free at the SEC's web site at www.sec.gov. You may also obtain for free each of these documents (when available) from MKS by directing your request to Ronald C. Weigner, Vice President and Chief Financial Officer of MKS at (978) 975-2350, or from John Tarrh, Vice President and Treasurer of ASTeX at (978) 284-4135. 30 -----END PRIVACY-ENHANCED MESSAGE-----