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ITT Industries Inc. formally launched a bid today for Wedeco AG Water Technology, saying the deal was approved by management and the supervisory boards of the German company. Wedeco shareholders will receive euro 18 per Wedeco share in cash.
This offer price represents a 36 percent premium over the three-month average Xetra closing share price of euro 13.22 prior to the initial announcement on November 11, 2003.
Wedeco shareholders now can tender their shares into the offer. The regular offer period is scheduled to expire at noon CET on January 16, 2004.
Wedeco's largest shareholder, GfS Finance GmbH, holding approximately 27% of Wedeco's share capital, has already signed a definitive share purchase agreement whereby GfS Finance GmbH has agreed to sell to ITT Industries German Holding GmbH all of its shares held in Wedeco.
The management and the supervisory board of Wedeco are fully supportive of the transaction and recommend Wedeco's shareholders accept the offer. They are committed to Wedeco joining ITT.
The acquisition gives ITT a unique opportunity to further round out its water and wastewater treatment portfolio, offering a complete line of pumps, water filtration and disinfection products worldwide.
Based in Duesseldorf, Wedeco employs 800 people and has seven facilities two in Germany, and one each in the United States, France, Italy, Hungary and Korea.
ITT Industries supplies advanced technology products and services in key markets including: electronic interconnects and switches; defense communication, opto-electronics, information technology and services; fluid and water management; and other specialty products.