ABB has launched a bid to acquire Entrelec, a French supplier of industrial automation and control products, in a Euro 310 million deal. The acquisition is aimed at expanding ABB’s product range and reinforcing its position in key European and American markets.
‘This acquisition is a very effective strategic fit for both companies and will open significant new growth opportunities, creating a broader product offering and a stronger presence in some important markets,’ said ABB president and CEO, Jorgen Centerman.
Under the terms of the bid, ABB will make a public tender offer in cash for all 4.9 million outstanding shares off Entrelec, listed on the French stock exchange. ABB will offer Euro 63 per share, representing a premium of 22.5 per cent, compared to the share price at the close of trading on April 5th of Euro 51.45.
Entrelec supplies industrial automation and control products, including electrical connecting devices, time relays, signalling and safety devices as well as wiring accessories for the housing market.
Joukp Karvinen (pictured), ABB’s executive vice president and head of the Automation Technology products division, said: ‘Entrelec’s technology, product scope and channels to market complement ours extremely well, with few overlaps. We will now bring together two very strong product lines and two global customer networks which we believe will provide growth as well as significant economies of scale in, for example, R&D, marketing and logistics.’
The terms of the proposal have been approved by the Entrelec Board of Directors, who unanimously recommended the offer as fair and in the best interests of Entrelec shareholders. ABB has said the transaction is not subject to financing. BNP Paribas will act as dealer manager for ABB’s bid.