Precision Optics Corp. Inc., a designer and manufacturer of advanced optical instruments for the medical and defense industries, has completed the acquisition of certain assets of Ross Optical Industries Inc. for up to $2 million.
The total purchase price comprises $1.5 million in cash at closing and additional payments up to $500,000 subject to a three-year earnout provision. Precision Optics, headquartered in Massachusetts, completed an equity capital raise of $950,000 at a per share price of $1.25 concurrent with the closing of the acquisition.
Ross Optical, based in El Paso, Texas, had revenues of $3.9 million and net income of $410,000 for the 12-month period ended Dec. 31, 2018. As part of the transaction, Precision Optics is acquiring slightly over $1 million of net working capital.
Divi Mangadu, who has been Ross Optical’s long-standing president, will continue in that leadership role in the company’s existing facility in El Paso.
Incorporated in 1989, Ross Optical evolved from an optical components supplier into an expanded solutions provider with a portfolio of optical fabrication and quality assurance equipment, technology, and technical solutions that supply a number of industries, including the defense, medical, and industrial markets.
Precision Optics Corp. has been developing and manufacturing advanced optical instruments since 1982. The company’s medical instrumentation line includes state-of-the-art endoscopes and endocouplers, as well as custom illumination and imaging products for use in minimally invasive surgical procedures.