Billion dollar sprinklers

Hartford, CT-based United Technologies is to acquire UK fire and safety products vendor Kidde in a $2.8 billion cash takeover.

Hartford, CT-based United Technologies is to acquire UK-based Kidde in a $2.8 billion cash takeover.

In addition to 165 pence per share, Kidde shareholders will also receive a special interim dividend of two pence per share in lieu of a final dividend for the year.

UK-based Kidde supplies fire and safety products including aircraft fire protection systems. It has operating companies in 29 countries, employs approximately 7,750 people and distributes products and services worldwide to commercial, industrial, aerospace, combustion control and retail customers.

It reported 2003 revenue of £938 million (approximately $1.53 billion).

The 165 pence offer represents a premium of approximately 34% over the closing price of Kidde shares on October 20, the last trading day before UTC’s interest in acquiring the company was disclosed.

The deal is expected to close in the first quarter of 2005 subject to customary conditions including regulatory agency approvals and compliance with required filing and other regulations.