Johnson Electric moves for motors

announced today that it will make a cash tender offer to acquire all of the outstanding shares of

’s

, 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."