Valmont to acquire UK metals group Delta for $430 million
05 March 2010
Valmont Industries Inc, a leading US manufacturer of engineered support structures agreed yesterday to acquire UK's Delta Plc, a maker of lighting poles and crash barriers and also a provider of galvanizing services for approximately $430 million in cash, aiming to expand its business in Asia, Australia and Africa.
The offer price of 185 pence (approximately 28 cents) in cash for each Delta share represents a premium of 20.3 per cent over the closing price of 153.8 pence per Delta share on 3 March, the day prior to the announcement.
Further to the acquisition news, shares in Delta soared 24.6 per cent or 37.75 pence to close at 191.50 pence yesterday in London, making it the maximum gainer.
The closing price is 3.5 per cent higher than Valmont's offer price, possibly on the speculation that a rival offer may spring up.
London-based Delta Group's businesses include steel poles and structures, galvanizing services and manganese materials. The company produces road safety barriers, poles and structures for lighting, telecommunication and power transmission, industrial grating and access systems. Delta also produces forged steel grinding media, zinc alloys and oxides, electrolytic manganese dioxide, and manganese metal for use in the production of steel and aluminium.
Delta's manufacturing operations are spread over Australia, Asia, South Africa and the US, employing around 2,500 people. The company reported revenue of £331 million ($500 million) in 2008.