Illinois Tool buying newspaper equipment maker
NEW YORK (Reuters) - Quipp Inc QUIP.O, which makes newspaper handling equipment, said on Thursday it would be acquired by diversified industrial manufacturer Illinois Tool Works (ITW.N: Quote, Profile, Research, Stock Buzz) for a price between $6.4 million and $8.4 million, or $4.30 per share and $5.65 per share.
The final price will be based on adjustments related to Quipp's cash and cash equivalents and indebtedness prior to the deal's closing.
Quipp's board unanimously approved the deal but won't proceed with it if the final price falls below $4.30 per share. Quipp believes this is unlikely and sees the transaction closing in the spring or early summer.
Quipp's shares were up 50 percent at $4.50 during morning trade on the Nasdaq.
ITW's shares were down 12 cents at $48.66 on the New York Stock Exchange.
(Reporting by Helen Chernikoff; editing by John Wallace and Dave Zimmerman)
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