Reuters: Private Equity: UPDATE 1-Cytec offers to buy UK's Umeco for $439 mln

Reuters: Private Equity Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

UPDATE 1-Cytec offers to buy UK's Umeco for $439 mln Apr 12th 2012, 07:18 Thu Apr 12, 2012 3:18am EDT * Offer of 550 pence per Umeco share, a 46 pct premium * Deal approved by both cos' boards * Acquisition to add to Cytec's earnings immediately * Umeco shares surge 44 percent April 12 (Reuters) - Specialty chemicals maker Cytec Industries Inc said it made an offer valued at about $439 million for British aerospace parts supplier Umeco Plc , in an attempt to build on its advanced composites businesses. The offer of 550 pence ($8.75) per Umeco share represents a premium of about 46 percent to Umeco stock's closing price on Wednesday. "(The acquisition) greatly improves our composite presence in the industrial sector," Cytec's Chief Executive Shane Fleming said. "The acquisition also enhances our near-term composite capacity while we complete capital investments." The boards of directors of both companies have unanimously approved the transaction. Cytec said it had received commitments from Umeco's top three shareholders, BlackRock, Hermes and Aberforth to vote in favor of the deal. Umeco, which counts Boeing, Airbus and BAE Systems among its customers, also make composite materials for Formula One racing cars. The acquisition, which would be financed using cash on hand, was expected to immediately add to Cytec's earnings. Cytec also forecast adjusted earnings per share for its first quarter to be between 45 percent and 50 percent above the current market expectations of 85 cents per share. Umeco shares jumped 44 percent to 543 pence at 0805 on Thursday on the London Stock Exchange. Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions