Alfa Laval makes 5bn kroner bid for Munters
Alfa Laval is a leading provider of products and services based on its key technologies of heat transfer, separation and fluid handling. Its products targeted at the food and beverage processing sectors include heat exchangers, separators and filters and equipment that safely transports, controls and regulates fluids. The Munters offer is the latest in a string of acquisition bids; over the past five years it has acquired 25 companies as part of its business growth strategy.
Alfa Laval has offered 68 kroner (€7.30) per share in cash for Munters – 30 percent higher than Friday’s closing share price of 52.5 kroner.
Stockholm-based Munters has said it will release its opinion of the offer, and the reasons for it, no later than two weeks before the acceptance period expires on October 8, with a settlement expected by October 15 if the offer is accepted.
President and CEO of Alfa Laval Lars Renström said in a statement: “The acquisition of Munters will complement our selection of products and gives us an increased application knowledge in air and climate solutions. Munters is a company with strong positions that we can further develop through Alfa Laval’s industrial structure and strong presence in the fast-growing markets of South America, Eastern Europe and, not the least, Asia.”
In a conference call with investors, Renström said that in very specific terms there is no overlap between the two companies, but in the broader sense of heat transfer, there are some commonalities.
Alfa Laval’s CFO Thomas Thuresson said: “We consider the businesses complementary to each other and not competing.”
Munters’ two largest shareholders, AB Industrivärden and Investment AB Latour – which hold about 29.6 percent of the company’s shares – have conditionally agreed to the offer, Alfa Laval said.
Munters said in a statement: “Alfa Laval is a company with the ability to complete an acquisition and to take responsibility for Munters.”
