MIGDAL HAEMEK, ISRAEL -- Camtek today announced a definitive agreement to sell its PCB business for $35 million to a Chinese private equity fund.

Principle Capital will pay $32 million in cash upon closing and an additional amount of up to $3 million conditioned upon the PCB business' financial performance in 2018. The worldwide PCB organization is expected to remain intact, including the R&D operations which are planned to continue operating from Israel with its Israeli personnel, Camtek said in a release.

The deal is subject to customary closing conditions, including regulatory and third-party approvals, and is expected to close during the third quarter.

camtek said the sale comes as the company focuses on the semiconductor industry. Camtek CEO Rafi Amit said, "This agreement is in line with our long-term strategy. Camtek will become a pure-play semiconductor inspection and metrology focused company, where we see many growth opportunities ahead. Our stronger balance sheet will also make it easier for us to explore synergetic acquisitions in our sector. Camtek as a semiconductor company will potentially present higher growth rates with improved gross margins."

"This agreement will enable Principle Capital to build a leading Asia based PCB inspection and metrology company, capitalizing on our well-positioned PCB unit. We believe Principle Capital will be able to take this business to the next level and accelerate its growth rates," Amit said.

Lin-Lin Zhou, CEO of Principle Capital, commented, "What we look for in every investment is a talented management team in a well-positioned business, where we can help accelerate growth. That is exactly what we have found at Camtek's PCB business, a market leader with strong technology and great customer reputation. We are very excited about the business' prospects and believe the deal is a win-win for all parties."

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