Brit. Co. To Buy Exide Electronics
RALEIGH, N.C. (AP) _ The British engineering company BTR PLC has reached an agreement to buy Exide Electronics Group Inc. for about $352 million in cash.
Exide makes devices that assure an uninterrupted flow of power to computers, communications and other industrial equipment. The devices keep the equipment running even when there is a power loss or distortion.
Those products would complement BTR’s actvities in making industrial batteries.
London-based BTR said Thursday it will pay $29 per share in cash for Exide, a 28 percent premium over Exide’s closing price of $22.25 a share on Wednesday on the Nasdaq Stock Market.
In morning trading Thursday, Exide shares climbed $6.3125 to $28.5625.
In addition to the purchase price, BTR is assuming about $233 million in Exide debt, making the total value of the deal about $585 million.
Ian Strachan, chief executive of London-based BTR, said Exide has leading market positions, innovative technology and strong relationships with computer customers that should complement BTR’s business.
The deal is subject to regulatory clearance but is expected to be completed by the end of the year.
Exide manufactures its products at facilities in the United States, Mexico and Finland. It employs approximately 3,500 people worldwide.
Exide earned $51 million in the year ended June 30 on sales of $562 million. BTR had sales of $15.4 billion in 1996.