BRUSSELS (Reuters) - Belgian weaving machine maker Picanol (PICB.BR) has bought a 27.6 percent stake in Belgian chemicals group Tessenderlo Chemie (TESB.BR) from French state-owned explosives and propellants maker SNPE.
Picanol said on Friday it agreed to pay 22 euros per share in cash, equivalent to 192 million euros ($254.1 million), for the stake and would finance the transaction from its own funds.
The price Picanol paid per share is above the 20.35 euros closing price of Tessenderlo on Thursday.
“We have had some strong years behind us and were looking for a place to invest,” Picanol’s spokesman Frederic Dryhoel said.
“Because of the cyclicality of our business we wanted a project in another industry with an international business but its headquarters in Belgium,” he added.
Tessenderlo has sold off a number of more basic chemicals and plastic operations and is now focused on a number of more specialized activities, including fertilizers and gelatin, and the processing of food waste.
Picanol is 88 percent owned by managing director Luc Tack.
BNP Paribas Fortis and HSBC have acted as advisors to SNPE SA for this transaction.
Reporting by Philip Blenkinsop and Robert-Jan Bartunek