SPX's billion dollar air filtration deal

SPX's billion dollar air filtration deal

Svedala deal a w a i t s FTC approval Finnish Metso Corp's offer for Svedala Industri AB made the middle of last year (Filtration +Separation, July/A...

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Svedala deal a w a i t s FTC approval Finnish Metso Corp's offer for Svedala Industri AB made the middle of last year (Filtration +Separation,

July/August 2000, p.6) has finally gained approval from the European Union (EU) Commission, but is still awaiting clearance by the US Federal Trade Commission (FTC). Although the Svedala purchase has been gained EU Commission approval, it is subject to certain conditions, namely the disposal of particular businesses. The businesses to be disposed of are involved in supplying fixed and mobile rock crushing equipment to the construction and mining industries, and represent between 6-7% of Metso's and Svedala's combined net sales. The review process by the FTC is still in progress, but Metso expects that in order to obtain clearance from the FTC it will also need to divest its grinding mills business.

The company estimates that the sale process of these required divestments, plus the remaining FTC review process could take up to two months. As a result, Metso has extended the acceptance period for its offer to 1 June 2001 .Further it would not rule out a further extension to the period should it be required. According to Metso, the process for the disposals agreed with the EU Commission in January this year is well underway and it is in continuing discussions with a shortlist of preferred bidders. It has also initiated the sale process of its grinding mills business, which reported annual net sales of ~20-30 million (US$18-27million). For m o r e information contac£: Metso Corp, Fabianinkatu 9 A, PO

Box 1220, FIN-O010 I , Helsinki, Finland. Tel: +358 20 484 lO0; Fax: +358 20 484 lO1; Website: www.metsocorporation.eom

Moving away f r o m filtration In an effort to focus on its high growth cores businesses, i.e. instrumentation and electronics, the Fairey Group plc, which is changing its name to Spectris plc, has sold three of its four filtration systems businesses. Parker Hannifin Corp, USA has acquired Fairey Arlon division, which manufactures hydraulic filters for mobile and industrial machinery, for an undisclosed sum. As part of Parker's Filtration Group, Arlon will extend the company's product range and manufacturing capabilities for hydraulic filtration devices, which are essential for the successful operation, maintenance and durability of hydraulic equipment. Arlon, which operates manufacturing facilities in Arnhem, The Netherlands and Wisconsin, USA, reported sales of US$21 million in 2000. Fairey Microfiltrex Ltd, has been acquired by Porvair plc, a material science group headquartered in the UK, in an all-cash deal worth £12 million (US$17 million). Microflltrex designs, manufactures and markets custom microfiltration

and separation systems. Last

year it achieved earning before interest and tax of £1.3 million ($1.9 million), with net assets totalling over £2 Million ($ 2.9 million) Commenting on the deal Ben Stocks, chief executive officer (CEO) of Porvair, said, the combination of MicroMtrex with Porvair's specialist filtration technology, in particular its expertise in microporous filter media development, will enable the company to become an innovative, specialist filtration business. Fairey Industrial Ceramics Ltd, which manufactures ceramic porous products for original equipment manufacturer's filtration, separation and diffusion systems, as well as domestic water purification filters is also in the process of being sold. However, no information on the deal was currently available. Finally, according to Fairey, its Fairey Nuclear business, the fourth business in its Filtration Systems segment that serves the nuclear power market, is to cease operation.

SPX's billion dollar air filtration deal SPX Corp has entered into a definitive agreement to acquire United Dominion Industries Ltd (UDI) in an all-stock transaction currently valued at US$954 million. As part of the deal SPX will also assume/refinance $876 million of UDI's debt, which brings the total transaction value to more than $1.8 billion. UDI's shareholders will receive SPX shares based on a fixed exchange ratio of 0.2353 of a SPX share per UDI share. The purchase price represents

4

M a y 2001

an approximate 30% premium for UDI shareholders. According to SPX's chairman, president and CEO John Blystone, the transaction will create a strong, multiple industrial company, with an anticipated annual revenue of more than $5 billion. SPX also will gain additional international reach as UDI derives approximately 33% of its earnings from sources outside the USA. UDI's businesses will be incorporated into four business segments - flow technology,

industrial products and services, technical products and systems, and service solutions. SPX expects the acquisition to be accretive to its earnings per share in the first full year and to produce significant incremental cash flow, based on achieving cost savings of at least $30 million in the first full year. HDI shareholders will own 23% of the newly expanded SPX. UDI, which makes air

towers and related equipment, has annual sales of $2.5 billion and employees approximately 14 000 in 20 countries worldwide. SPX is a global supplier of technical products and systems, industrial products and services, service solutions and vehicle components.

filtration and dehydration

3301, USA. Tel: +I 231 724 5000; E-mail: spx@spx, corn; Website: www.spx,corn

equipment, compaction equipment, boilers, cooling

For more information contact: SPX

Corp, PO Box 3301, 700 Terrace Point Drive, Muskegon, M149443-

Filtration+Separation