Cytec buying Umeco for £275m
Umeco, which also supplies aerospace parts, is being sold for 550p a share, a 46 per cent premium to Umeco stock’s closing price on Wednesday.
Umeco shares closed at 551p last night.
The boards of both companies have unanimously approved the transaction.
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Hide AdCytec said it had received commitments from Umeco’s top three shareholders, BlackRock, Hermes and Aberforth, to vote in favour of the deal.
Analysts said US-based Hexcel Corp, which makes carbon fibre and other composites, could also make an offer for Umeco.
N+1 Brewin analyst James Tetley said: “If there were to be a counter bid, Hexcel would be the likeliest candidate, but in our view this is likely to prove a knockout bid.”
Umeco, which counts Boeing, Airbus and BAE Systems among its customers, employs around 50 staff at its process materials Aerovac factory in Keighley, West Yorkshire.
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Hide AdCytec said the acquisition, expected to close in the third quarter, would immediately add to its earnings. It will be financed using cash.
Cytec’s chief executive Shane Fleming said: “The acquisition greatly improves our composite presence in the industrial sector. The acquisition also enhances our near-term composite capacity while we complete capital investments.”
Cytec did not expect “significant” workforce reductions resulting from the transaction, but hinted at closing Umeco’s head office in Warwickshire.