Heico buys Teleflex stake for $63m
MIAMI, June 1 (Reuters) - Aircraft parts manufacturer Heico Corp (HEI - news). said Monday it agreed to acquire control of French aeronautical company Teleflex-Lionel-Dupont through a stock swap valued at $63 million.
A company statement said the deal to exchange Teleflex stock for shares of Heico's class A common stock was made with shareholders of Teleflex and French Compagnie Gestion Industrielle et Financiere.
Gestion owns 42 percent of Teleflex outstanding shares.
Under terms of the agreement, Heico will acquire a controlling interest in Gestion and a direct interest of approximately 12 percent of Teleflex, giving Heico voting control.
Following completion of the acquisition, Heico will offer to acquire the shares held by Teleflex's minority shareholders, the statement said.
Teleflex and Gestion shareholders would then receive about 2.25 million shares of Heico's class A common stock, valued at approximately $63 million, based on its closing price in trading Friday.
Heico said it plans to list both its common shares and class A common stock on the Paris Stock Exchange.
The swap offer for Teleflex shares provides for the exchange of seven shares of Heico class A common stock for each 10 Teleflex shares, based on the prices and one-month trading averages of the two companies, Heico said.
Heico Chief Financial Officer Thomas Irwin said Heico plans to complete the first phase of the acquisition, in which Heico would control a voting interest in Teleflex, by July 31. He said he expects the offer for stock to be completed by the end of the year.
Following the acquisition, Heico said it planned that Teleflex would operate as part of the Heico Aviation Products Corp. subsidiary, which carries out ground support equipment operations.
The Heico statement said the acquisition of Teleflex would establish Heico as the leading manufacturer of ground support equipment.
Teleflex posted revenues of more than $146 million and Heico had revenues of more than $64 million the year ended Dec. 31, 1997. |
