Johnson Electric Holdings
announced today that it will make a cash tender offer to acquire all of the outstanding shares of
’s
Saia-Burgess, the world's leading supplier of stepper motors and sub-systems.
The offer price of CHF1,060 per share values the company at approximately CHF695.9 million ($548.5 million). Johnson Electric expects to assume CHF117.5 million net debt ($92.4million) in connection with the offer.
The Saia-Burgess board of directors has unanimously approved the acquisition proposal, which is subject to regulatory approvals and customary closing conditions.
According to a statement, management at both companies are in agreement about the significance of the growth opportunities resulting from this transaction.
Both companies have more than 50% of their revenues derived from the automotive industry, with the Johnson Electric strength in DC motors being complemented by the Saia-Burgess strength in stepper motors. Similarly, the industrial segment represents 40% of the Saia-Burgess business portfolio, creating an opportunity to leverage Johnson Electric's sales reach into Asian markets.
Johnson Electric’s tender follows Saia-Burgess’ rejection of a previous tender offer from Sumida Corporation. According to Daniel Hirschi, CEO of Saia-Burgess, "The strategic, industrial logic and culture alignment between Johnson Electric and our company is a compelling combination that will accelerate growth and assist in executing the Saia-Burgess strategic plan."
First seven members join NG’s Great Grid Partnership
Agreed. It is all pretentious posturing and trite branding with no meaning or gravitas. Prepare to be disappointed by all of these greats/grates.