US-based Gardner Denver is to acquire the outstanding share capital of Syltone, the Bradford, UK-based designer and manufacturer of compressors and blowers.
Gardner Denver has offered 185p in cash for each Syltone share or approximately £47.2 million (approximately $79.1 million) in aggregate for the outstanding shares.
Syltone reported sales of £78.8 million (approximately $121.7 million) and profit before tax of £4.8 million (approximately $7.4 million) for the year ended March 31, 2003.
The UK and North America are Syltone’s largest markets, representing approximately 27% and 20% of sales, respectively, for the year ended March 31, 2003. Syltone’s other key served markets are France, Germany and other European countries.
Syltone’s activities are structured into the Transportation Division and the Fluid Transfer Division.
The Transportation Division focuses on the design and manufacture of equipment for handling bulk product on commercial vehicles in either dry or liquid form, the provision of on-board power, the design and manufacture of access platforms and power take-offs, axles and gearboxes for demanding commercial and military applications.
The Fluid Transfer Division designs and manufactures equipment for loading and offloading liquids from ships, railcars and road vehicles as well as dry-break couplings.
If certain conditions to the offer are met, the transaction is expected to close in early 2004 and be accretive to Gardner Denver’s diluted earnings per share for the year.