UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 12)
ELECTRO SCIENTIFIC INDUSTRIES INC. (ESIO)
--------------------------------------------------------------------------------
(Name of Issuer)
Common Stock
--------------------------------------------------------------------------------
(Title of Class of Securities)
285229100
--------------------------------------------------------------------------------
(CUSIP Number)
David Nierenberg
The D3 Family Funds
19605 NE 8th Street
Camas, WA 98607
(360) 604-8600
With a copy to:
Henry Lesser, Esq.
DLA Piper LLP (US)
2000 University Avenue
East Palo Alto, CA 94303
(650) 833-2000
--------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
December 8, 2008
--------------------------------------------------------------------------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D and is filing this
schedule because of Sections 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check
the following box |_|.
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
The D3 Family Fund, L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(e)
|_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Washington
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER OF -------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 598,762 Common shares (2.2%)
EACH --------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 0
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
598,762
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
For the reporting person listed on this page, 598,762; for all reporting
persons as a group, 4,060,127 shares (15.0%)*
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See
Instructions)
|_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
15.0%*
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
PN
--------------------------------------------------------------------------------
*See Item 5 of this Amendment
2
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
The D3 Family Bulldog Fund, L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(e)
|_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Washington
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER OF --------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 2,414,476 common shares (8.9%)
EACH --------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 0
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,414,476
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
For the reporting person listed on this page, 2,414,476; for all reporting
persons as a group, 4,060,127 shares (15.0%)*
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See
Instructions)
|_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
15.0%*
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
--------------------------------------------------------------------------------
*See Item 5 of this Amendment
3
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
The D3 Family Canadian Fund, L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(e)
|_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Washington
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER OF --------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 232,475 common shares (0.9%)
EACH --------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 0
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
232,475
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
For the reporting person listed on this page, 232,475 shares; for all
reporting persons as a group, 4,060,127 shares (15.0%)*
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See
Instructions)
|_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
15.0%*
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
--------------------------------------------------------------------------------
*See Item 5 of this Amendment
4
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
The DIII Offshore Fund, L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(e)
|_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Bahamas
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER OF --------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 814,414 common shares (3.0%)
EACH --------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 0
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
814,414
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
For the reporting person listed on this page, 814,414; for all reporting
persons as a group, 4,060,127 shares (15.0%)*
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See
Instructions)
|_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
15.0%*
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
--------------------------------------------------------------------------------
*See Item 5 of this Amendment
5
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
Nierenberg Investment Management Company, Inc.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(e)
|_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Washington
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER OF --------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 4,060,127 shares (15.0%)*
EACH --------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 0
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,060,127 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
For the reporting person listed on this page, 4,060,127; for all reporting
persons as a group, 4,060,127 shares (15.0%)*
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See
Instructions)
|_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
15.0%*
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO
--------------------------------------------------------------------------------
*See Item 5 of this Amendment
6
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
Nierenberg Investment Management Offshore, Inc.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(e)
|_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Bahamas
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER OF --------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 814,414 common shares (3.0%)
EACH --------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 0
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
814,414 common shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
For the reporting person listed on this page, 814,414; for all reporting
persons as a group, 4,060,127 shares (15.0%)*
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See
Instructions)
|_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
15.0%*
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO
--------------------------------------------------------------------------------
*See Item 5 of this Amendment
7
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (entities only)
David Nierenberg
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(e)
|_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States of America
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER OF --------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 4,060,127 shares (15.0%)*
EACH --------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 0
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,060,127 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
For the reporting person listed on this page, 4,060,127; for all reporting
persons as a group, 4,060,127 shares (15.0%)*
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See
Instructions)
|_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
15.0%*
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
--------------------------------------------------------------------------------
*See Item 5 of this Amendment
8
This Amendment No. 12 to Schedule 13D (this "Amendment") amends the
below-indicated items from the Schedule 13D previously filed by or on behalf of
the undersigned parties (the "Reporting Persons") (the "Schedule 13D"), by
supplementing such Items with the information below:
Item 4. Purpose of Transaction
As a result of discussions held between ESIO and the Reporting Persons
since the Reporting Persons filed Amendment No. 11 to the Schedule 13D dated
October 6, 2008, ESIO and the Reporting Persons have entered into a Voting
Agreement dated as of December 8, 2008 (the "Voting Agreement"). The Voting
Agreement is filed as Exhibit 1 to this Amendment (see Item 7 to this Amendment)
and is hereby incorporated by reference in response to this Item 4, and the
summary description in this Item 4 of the Voting Agreement is qualified in its
entirety by the full text thereof.
The Voting Agreement provides (among other things) that if, on the record
date with respect to any meeting of the shareholders of the Company (however
called) or any written action by consent of such shareholders, the Reporting
Persons collectively "Own" (as defined in the Voting Agreement and used in this
Item 4 with the same meaning) issued and outstanding Shares that, in the
aggregate, exceed 15% of the total issued and outstanding Shares as of such
record date (the number of Shares collectively Owned by the Reporting Persons as
of such record date that (in ESIO's good faith determination, made solely for
the purposes of the Voting Agreement) exceeds 15% of the total issued and
outstanding Shares as of such record date being referred to in the Voting
Agreement, and this Item 4, as the "Excess Shares"), then, at any such meeting
or in any such consent, the Reporting Persons are obligated to cause the number
of Excess Shares Owned by them to be voted (whether in favor or against, as
applicable) in accordance with the recommendation of the Company's Board of
Directors (referred to in this Item 4 as the "Company Board"). To support this
voting obligation governing their Excess Shares, the Reporting Persons have
granted to ESIO an Irrevocable Proxy dated as of December 8, 2008 (referred to
in the Voting Agreement, and this Item 4, as the "Proxy") with respect to their
Excess Shares pursuant to the Voting Agreement (the terms of which are set forth
in Exhibit 2 to this Amendment and incorporated by reference in response to this
Item 4). The Proxy does not cover, and the Voting Agreement contains no
obligations of the Reporting Persons with respect to the voting of, any Shares
Owned by the Reporting Persons that do not constitute Excess Shares (referred to
in this Item 4 as the "Non-Excess Shares"). The Voting Agreement also provides
(among other things) that any transfers of Shares Owned by the Reporting Persons
to any one or more of certain specified types of transferees (other than another
Reporting Person), and any acquisitions of Shares by certain entities (other
than another Reporting Person) that the Reporting Persons control (by reference
to criteria set forth in the Voting Agreement), are conditioned on the
tranferee(s) or acquiror(s) agreeing in writing to be bound by the Voting
Agreement. The Voting Agreement further provides (among other things) that it
will remain in effect for a minimum of three years, after which it (and the
Proxy) will terminate at such time as all required parties to the Voting
Agreement as shareholders of ESIO collectively cease to Own at least 15% of the
then-total issued and outstanding Shares.
In accordance with the Voting Agreement, the Reporting Persons will vote
their Excess Shares in accordance with the recommendations of the Company Board
with respect to all proposals (referred to in this Item 4 as the "Zygo Merger
Proposals") submitted for a vote to the
9
ESIO shareholders by the Company Board in connection with the pending merger
(the "Zygo Merger") of a wholly-owned subsidiary of ESIO with Zygo Corporation
("Zygo"). The Reporting Persons currently anticipate that they will vote all
Non-Excess Shares as recommended by the Board on all of the Zygo Merger
Proposals.
By reporting the foregoing information, and filing the Voting Agreement as
Exhibit 1 to this Agreement and referring thereto in this Amendment, the
Reporting Persons do not intend to solicit, nor are they soliciting, proxies or
consents from, nor seeking or requesting any other action by, any of the other
shareholders of ESIO with respect to any of the Zygo Merger Proposals or any
other proposals that may be submitted to the shareholders of ESIO for a vote or
consent from time to time.
The previous statements as to the views of the Reporting Persons regarding
the Voting Agreement and the Zygo Merger Proposals represent solely their own
analyses and judgments, based on publicly-available information and their own
internal evaluation thereof, as well as their decision to enter into the Voting
Agreement. Those statements are not intended, and should not be relied on, as
investment advice to any other investor or prospective investor. To the extent
those statements reflect assessments of possible future developments, those
assessments are inherently subject to the uncertainties associated with all
assessments of future events; actual developments may materially differ as a
result of circumstances affecting ESIO and/or Zygo and/or extrinsic factors such
as developments in ESIO's or Zygo's respective industry, the economic
environment and the status of the Zygo Merger. The Reporting Persons reserve the
right to change their internal evaluation of their investment in ESIO in the
future, as well as to increase or decrease their investment depending on their
evaluation (consistent with the Voting Agreement), without further amending the
Schedule 13D except as required by applicable rules.
Item 5. Interest in Securities of the Issuer
(a, b) The Reporting Persons, in the aggregate, beneficially own 4,060,127
Shares, constituting approximately 15.04% of the outstanding Shares.
The last purchases of Shares by any of the Reporting Persons were on July
24, 2008. Based on what was then the most recent publicly-reported number of
Shares outstanding (27,090,598 as of June 6, 2008, as set forth in ESIO's June
11, 2008 Form 10-K for the transition period June 3, 2007 to March 29, 2008),
those purchases resulted in the Reporting Persons then beneficially owning in
the aggregate 14.99% of the outstanding Shares. Subsequent to those last
purchases of Shares by the Reporting Persons, in its November 6, 2008 Form 10-Q
for the quarter ended September 27, 2008, ESIO reported a reduced number of
outstanding Shares as of October 31, 2008 (26,997,330). For the purposes of this
Amendment, the Reporting Persons have calculated their aggregate percentage
beneficial ownership (15.04%) based on that later lower reported number.
Item 6. Contracts, Arrangements, Understandings or Relationships with the Issuer
Exhibits 1 (the Voting Agreement) and 2 (the Proxy) to this Amendment
(filed in response to Item 7) are hereby incorporated by reference in response
to this Item 6. Also see the response to Item 4 to this Amendment.
10
Item 7. Material to be filed as Exhibits
Exhibits 1 and 2 to this Amendment are, respectively, the Voting Agreement
and the Proxy referred to in response to Items 4 and 6 to this Amendment.
11
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, each of the
undersigned certifies that the information set forth in the Statement is true,
complete and correct.
D3 Family Fund, L.P., D3 Family Bulldog
Fund, L.P., and D3 Family Canadian Fund, L.P.
By: Nierenberg Investment Management
Company, Inc.
Its: General Partner
December 9, 2008 By: /s/ David Nierenberg
------------------------- ------------------------------------------
David Nierenberg, President
DIII Offshore Fund, L.P.
By: Nierenberg Investment Management
Offshore, Inc.
Its: General Partner
December 9, 2008 By: /s/ David Nierenberg
------------------------- ------------------------------------------
David Nierenberg, President
Nierenberg Investment Management
Company, Inc.
December 9, 2008 By: /s/ David Nierenberg
------------------------- ------------------------------------------
David Nierenberg, President
Nierenberg Investment Management
Offshore, Inc.
December 9, 2008 By: /s/ David Nierenberg
------------------------- ------------------------------------------
David Nierenberg, President
December 9, 2008 /s/ David Nierenberg
------------------------- ----------------------------------------------
David Nierenberg