ABB has announced a recommended offer to acquire Chloride in order to establish a leading presence in and help to meet the growing demand for uninterruptible power supplies
The boards of directors of both companies have agreed on a recommended offer price of 325 pence per share. The offer price values the business at approximately £860m.
Chloride shareholders will also be entitled to receive a final dividend of 3.3 pence per share, as proposed on 24 May 2010.
Chloride’s uninterruptible power supply (UPS) technology is used in applications where power quality and security are critically important. This includes ABB’s traditional utilities and industrial customer base, such as the oil, gas and petrochemicals industry, as well as new sectors in service industries such as data centres, financial institutions, hospitals and airports.
London-based Chloride, which has around 2,500 employees and reported revenue of £336m in its fiscal year ended 31 March 2010, would be integrated into ABB’s Discrete Automation and Motion division.
The acquisition is subject to approval by Chloride shareholders, the UK High Court and certain regulatory authorities.