ABB Automation to Buy EntrelecMay 01, 2001 by Jeff Shepard
ABB Automation Inc. (Switzerland) has launched a bid to acquire Entrelec (France), a Lyon-based supplier of industrial automation and control products. The acquisition is aimed at expanding ABB's product range and reinforcing its position in key European and American markets. Under the terms of the bid, ABB will make a public tender offer in cash for all 4.9 million outstanding shares of Entrelec. ABB will offer €63 per share. The value of the bid on a fully diluted basis is approximately €310.0 million.
“This acquisition is a very effective strategic fit for both companies and will open significant new growth opportunities, creating a broader product offering and a stronger presence in some important markets," said ABB President and CEO Jörgen Centerman.
Jouko Karvinen, ABB's executive vice president and head of the automation technology products division, added “Entrelec's technology, product scope and channels to market complement ours extremely well, with few overlaps. We will now bring together two very strong product lines and two global customer networks, which we believe will provide growth as well as significant economies of scale in, for example, research and development, marketing and sales, and logistics."
The terms of the proposal have been approved by the Entrelec board of directors, who unanimously recommended the offer as fair and in the best interests of Entrelec shareholders.