Court gives go-ahead to Clyde’s takeover

Clyde revealed plans to sell up to private equity for £33.3m in December, when big shareholders lost patience with its stock market valuation.

The Doncaster-based engineer recommended an offer by Schenck Process, a German processing group owned by European buyout firm IK Investment Partners.

Shares in Clyde were suspended yesterday to confirm the company’s reduction in share capital, part of a takeover via a court-sanctioned scheme of arrangement (SoA). Clyde said in a statement the SoA is expected to become effective today, which will end dealing in the company’s shares.

Shareholders backed its takeover last month.

Clyde, which makes pneumatic processing systems, joined the Alternative Investment Market in July 2006. It had been planned as an “acquirer and consolidator” in the processing industry, but this was brought to a halt by the global recession.

Clyde said its directors were “disappointed at the continuing low valuation placed on CPS despite the continuing strong performance of the business”. Its low market valuation kept it off the radar of UK fund managers, it added.

Combined with its capital structure, investment needs and £12m pension scheme deficit, the buyout was “the most appropriate strategic way... to achieve its next phase of growth”, the firm said.