UPDATE 1-Duerr secures majority of Homag in diversification drive

Tue Jul 15, 2014 11:29am EDT

Related Topics

* Duerr wins 75.8 percent of Homag voting rights

* Offers 26.35 euros for remaining shares

* Says can finance takeover from own liquidity

* Homag shares rise 7.1 pct, above offer price (Adds details on financing, shareholder agreements, purchase price premium)

FRANKFURT, July 15 (Reuters) - Germany's Duerr said on Tuesday it had secured 75.8 percent of voting rights in Homag and would launch a cash offer for the remaining shares, valuing the woodworking equipment specialist at 413 million euros ($563 million).

Duerr has been investing in bolt-on acquisitions to diversify beyond its core business of supplying production systems for the automotive sector and to tap into growing demand for technologies such as gluing, filling and energy efficiency.

The company based in the southwestern German town of Bietigheim-Bissingen agreed to buy a total 53.7 percent of Homag shares for 219 million euros from Deutsche Beteiligungs AG , a share pool of the Schuler family and the Klessmann foundation and two further shareholders whom Duerr did not name.

In addition, it is joining the Schuler/Klessmann share pool, which owns 25.1 percent of Homag shares.

Investors sometimes pool their shares to have a larger combined stake in a firm and have more say in company decisions.

Typically members of share pools take a joint stance in questions about company strategy.

Deutsche Beteiligungs AG said Duerr was paying it 26 euros per share, less than the 26.35-euro public takeover offer launched earlier on Tuesday, for its 39.5 percent stake in Homag and said it may use the proceeds to pay its shareholders a special dividend.

Homag, based in the Black Forest region, is the global leader in the manufacture of plant and machinery for wood processing, with more than 5,000 employees and an estimated market share of 28 percent, according to its website.

It posted 2013 sales of 788.8 million euros and a net profit of 18.4 million.

Duerr said it did not plan to squeeze out minority shareholders nor to delist Homag's stock, and said the Homag brand would remain independent under the Duerr umbrella.

Homag said its management and supervisory boards would comment on Duerr's bid once full offer documents were available.

Homag's stock was up 7.1 percent at 27.10 euros by 1429 GMT.

Duerr said it could finance the acquisition with its own funds, having held 867 million euros of liquid funds at the end of March, including proceeds from a bond placed earlier this year.

Duerr AG is being advised by Macquarie on the transaction.

($1 = 0.7331 Euros) (Reporting by Maria Sheahan; Editing by Kirsti Knolle and Keiron Henderson)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.