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IPG Photonics Announces Sale of its Russian Operations
MARLBOROUGH, Mass., Aug. 29, 2024 (GLOBE NEWSWIRE) -- IPG Photonics Corporation (NASDAQ: IPGP) today announced that it has sold its entire interest in its
About this update from Ipg Photonics Corporation
[{"type":"text","content":"MARLBOROUGH, Mass., Aug. 29, 2024 (GLOBE NEWSWIRE) -- IPG Photonics Corporation (NASDAQ: IPGP) today announced that it has sold its entire interest in its Russian subsidiary, IRE-Polus. The purchaser is a group led by Softline Projects LLC and current management of IRE-Polus. The sale marks the finalization of IPG’s exit from all facilities in Russia, following imposed sanctions on trade after the start of the war with Ukraine. The proceeds from the transaction are $51 million before advisory and other fees. “Our team executed flawlessly to transition our manufacturing operations after the war’s outbreak without any impact to our customers. Our ability to respond to adverse events out of our control highlights the resilience of the company as we were able to lean on our global manufacturing capabilities to increase production in Germany, the United States and Italy and start production in Poland,” said Dr. Mark Gitin, IPG Photonics’ Chief Executive Officer. “Today, with the sale of our Russian operations now behind us, we are focusing on optimizing our operations to drive improved productivity.” The Company expects that the sale will reduce third quarter revenue as compared to previously provided guidance by approximately $5 million. IRE-Polus revenue accounts for less than 5% of IPG’s full-year revenue. Related to the transaction, the Company expects to record total estimated charges of $195 million to $210 million. Of these total estimated charges, $60 million to $65 million relates to the carrying value of net assets of IRE-Polus that is in excess of net proceeds received on the sale and $135 million to $145 million relates to the cumulative translation adjustment component of other comprehensive income that is included in shareholders equity. The Company does not expect to provide any further information regarding the transaction until it reports earnings results for the third quarter. Contact Eugene FedotoffSenior Director, Investor Relations IPG Photonics Corporation [email protected] About IPG Photonics Corporation IPG Photonics Corporation is the leader in high-power fiber lasers and amplifiers used primarily in materials processing and other diverse applications. The Company’s mission is to develop innovative laser solutions making the world a better place. IPG accomplishes this mission by deliverin...