UK engineering products maker Tomkins Plc today said that it has agreed to be acquired for £2.87 billion ($4.37 billion) by Canada Pension Plan Investment Board and Canadian private-equity firm Onex Corporation.
Last week, the London-based Tomkins, listed on the London and New York Stock Exchanges, had said that it had received a takeover offer from Canadian investing firms and has allowed the consortium to conduct due diligence on the company. (See: UK engineering firm Tomkins receives £2.86 billion takeover offer)
The offer immediately evoked opposition from pensions group Standard Life, with an about 2.9-per cent stake in Tomkins, which rejected the deal saying that the 325 pence-a-share offer undervalues the company.
Tomkins said in a statement today that its board's recommended the 325 pence-a-share in cash offer after it had given a negative forecast for the company's second-half performance and Tomkins' shares were trading at 230-pence before the consortium made its offer.
Tomkins is a manufacturer of industrial, automotive, and building products, with operations in North America, Europe, and Asia.
Tomkins was once nicknamed "guns to buns" conglomerate after acquired disparate businesses - gun maker Smith & Wesson and food group Rank Hovis McDougall.
The company is organised into two business groups - industrial and automotive, and building products.