100% State-owned Russian VC fund RUSNANO has made a successful exit from its investment in erstwhile portfolio company IRE Polus, a part of the world leader in fiber lasers – IPG Photonics. The 22.5% stake was bought back by the parent company’s IPG Laser for USD 55 mln in cash. RUSNANO initially co-invested in the company at a critical time, when their USD 45 mln helped the company expand its production limit five-fold. The expansion led to tremendous opportunities from large Russian companies in various industries as diverse as telecommunications and ship-building. Eight new factories were added to drastically enhance their production capabilities for finished products and optical components. The exit has been successful by satisfying two of RUSNANO’s baseline criteria to consider an exit – the unit can now operate independently and the ROI has been higher than the projected hurdle rate. However, the exit also hints at a possible reinvestment as RUSNANO fully expects to put the money back into other projects for IPG Photonics.
IPG Photonics (www.ipgphotonics.com)
IPG Photonics is the acknowledged global leader in the fiber lasers and fiber amplifiers industry and are renowned for their superior-quality yet economical commercial materials-processing equipment. The Oxford, Massachusetts company was founded in 1990 and has been a pioneer in the commercialization of fiber lasers, expanding the uses of their technology tremendously in the process. IPG Photonics has also been a significant contributor to the green energy effort through the promoting of fiber lasers over the more power-hungry conventional lasers. The company has been featured on Massachusetts’ The Globe 100 and was declared the #6 small company in America by Forbes. IPG also operates production units in Russia, Germany and Italy as well as regional sales centers in India, France, China, the UK, Singapore, Korea and two in the United States, in Detroit and Silicon Valley. The company is headed by CEO and Chairman of the Board Valentin P. Gapontsev and is currently riding a growth wave last pegged at 23 percent in 1Q 2012.