General Electric Co. will buy Osmonics Inc., a maker of water filtration
systems, for about $253 million in stock and cash to expand the product
offerings and technological reach at its GE Water unit.
"The fit between GE Water and Osmonics will allow us to better serve the
water needs of our global customers," said John Rice, president and CEO of
GE Power Systems.
Based in Minnetonka, Minn., Osmonics is a manufacturer and worldwide
marketer of high technology water purification and fluid filtration,
separation and handling equipment.
In the merger, Osmonics shareholders will receive the equivalent of $17
of GE common stock for each share of Osmonics. Shareholders may elect to
receive $17 in cash per share instead of GE shares, subject to proration so
that the total cash paid does not exceed 55 percent of the total merger
The merger, which is subject to the approval of the holders of a majority
of Osmonics' outstanding common shares, government approvals and other
customary conditions, is expected to close in the first quarter of 2003.
Following the completion of the acquisition, Osmonics will be integrated
with GE Water, a unit of GE Power Systems.
Osmonics, with worldwide employment exceeding 1,200, reported sales of
$207 million in 2001. The company manufactures high-technology water
purification and fluid filtration, fluid separation, and fluid handling