Brooks Automation Sells Chip Gear Business, Scraps Plan To Split Up

Brooks Automation (BRKS) on Monday announced plans to sell its semiconductor equipment business for $3 billion in cash to a private equity firm. The deal will allow Brooks to focus on its life sciences business. BRKS stock jumped on the news.


Boston-based Thomas H. Lee Partners agreed to buy the Semiconductor Solutions Group business from Brooks, which is headquartered in Chelmsford, Mass. The semiconductor unit generated about $613 million in revenue in the 12 months ended June 30.

Brooks anticipates the deal closing in the first half of 2022. It will use the proceeds from the sale to accelerate the growth of its life sciences business.

In May, Brooks disclosed plans to split into two publicly traded companies: one focused on semiconductor equipment and another focused on life sciences. However, it instead opted for a sale of the semiconductor unit. THL will use the Brooks Automation name for the semiconductor business while the remaining life sciences company will be renamed.

BRKS Stock Jumps On Unit Sale

Brooks’ semiconductor equipment business makes high-precision, high-throughput vacuum robots and systems. It also makes contamination control systems. The business recently expanded into collaborative robotics for multimarket applications.

In afternoon trading on the stock market today, BRKS stock rose 7.6%, near 101.30. Earlier in the session, it touched a buy point of 104.41 out of a cup base, according to IBD MarketSmith charts.

BRKS stock is tied for second place among 32 stocks in IBD’s semiconductor equipment industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 98 out of 99. IBD’s Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.


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