METSO ACQUIRES SVEDALA
Metso Corp. Oyj, Helsinki, Finland, a global supplier of products and services for rock and mineral processes, is acquiring Sweden’s Svedala Industri AB for $1.6 billion in cash and assumed debt to expand it’s rock-crushing business.
Metso will combine Nordberg, its rock and mineral processing business, with Svedala to create a global market in the supply and service of processes and related equipment for the civil engineering, construction and mineral processing industries.
“The combination of Metso and Svedala has compelling industrial logic and we consider it to be positive for our customers and employees,” says Rune Andersen, chairman of Svedala. “I view Metso as a logical and long-term industrial owner.”
The large combined installed machine base, together with the strength and wide geographical reach of the combined distribution and service network, will significantly enhance Metso’s growth prospects in rock and mineral processing and as a whole, the company says.
“Combining the businesses allows Nordberg and Svedala to develop service and other customer support activities and thereby better address the rapidly evolving needs of increasing numbers of global customers in a consolidating but growing industry,” says Heikki Hakala, president and CEO of Metso Corp.
Metso Corp., with annual net sales of roughly $1.5 billion, is making a recommended cash offer to the shareholders of Svedala for about $21 per share, whereas holders of convertible debentures are being offered about $28 per share, with a nominal amount of about $27. The offer for the shares represents a premium of about 54% to the closing share price on June 20, 2000 and 29% based on the average for the 12 months prior to the announcement of the offer. Metso will also assume debt worth about $528 million.
The acquisition is subject to approval by Svedala shareholders.
BOBCAT PHASES OUT MELROE NAME
Bobcat Co., Fargo, N.D., has replaced Melroe Co. as the name of the compact equipment manufacturer.
“Over the past four decades, equipment users around the world have come to recognize the familiar Bobcat brand,” says Chuck Hoge, president and CEO of Bobcat.
Bobcat Co. also introduced a new logo in tandem with the new name.
SMOOT CO. PURCHASED
The Smoot Co. Inc., Kansas City, Kan., has been purchased by Taylor Holdings Inc. The Smoot Co. designs and manufactures dense and dilute phase pneumatic conveying systems and components for bulk material handling and supplies a full line of pneumatic system ancillary equipment.
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