US pump and compressor manufacturer Thomas Industries has agreed to pay 85.5 million Euros in cash and 1.8 million shares of Thomas common stock for substantially all of the assets of Rietschle, a privately held pump and compressor manufacturer based in Schopfheim, Germany.
In addition, Thomas will assume approximately 20 million Euros of net debt in connection with the transaction.
Dieter Rietschle, who was the Managing Director of Rietschle, will join the board of directors of Thomas Industries in October and the Rietschle family will hold an approximate 10% interest in Thomas Industries.
Rietschle has three manufacturing facilities in Europe and 23 distribution and sales subsidiaries in North and South America, Europe, Asia and Australia. Thomas Industries employs 1,075 at eight manufacturing facilities – five in the US and three in Germany – and 12 international sales offices in the US, Europe, Asia and Australia. In 2001, Rietschle had sales of $151 million while Thomas had sales of $184 million.
Approximately $2 million to $4 million of pre-tax synergies are expected annually after the first year of operation of the combined outfit.
Rietschle products will continue to be sold under the Rietschle brand name.