SKF says to buy U.S. Kaydon in $1.25 bln deal
STOCKHOLM, Sept 5
STOCKHOLM, Sept 5 (Reuters) - Sweden's SKF, the world's biggest bearings maker, said on Thursday it had agreed to buy U.S.-based Kaydon Corporation in an all-cash deal valued at about $1.25 billion.
SKF said in a statement that the deal, which included $95 million of net debt, would be paid with cash on hand and boost the group's earnings in the first year after the transaction.
The offer of $35.5 per Kaydon share represented a 22 percent premium on the closing price on Wednesday and had been unanimously recommended by the company's shareholders, SKF said.
Kaydon is diversified industrial manufacturer with 2,100 employees which had sales of $475 million last year and an adjusted operating profit margin of around 16 percent, SKF said.
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