Low & Bonar
Middle Market: European Commission Approves Freudenberg Takeover of Low & Bonar; Scottish Court Hearing Due May 7, Scheme Effective May 12 Subject to Sanctioning
Thu 04/23/2020 13:11 PM
Relevant Documents:
Low & Bonar Scheme
Low & Bonar Competition Clearance
EC Press Release
Freudenberg Press Release
The European Commission has approved Freudenberg’s acquisition of U.K. building materials company Low & Bonar, according to a release on April 17.
The commission has granted an unconditional phase 1 clearance under the EU Merger Regulation and completion is subject to the satisfaction or waiver of the remaining conditions to the offer, including the sanction of the scheme of arrangement by the Scottish Court on May 7, according to the scheme release. Subject to the court sanctioning, the scheme is expected to become effective on May 12. The scheme must be implemented by June 30 at the latest.
On Sept. 20, Low & Bonar’s board recommended a cash offer from Freudenberg to acquire the whole group for 15.5 pence per share which was then approved by shareholders on Nov. 5.
Before the clearance, some investors were concerned that the planned takeover would face delays and Low & Bonar management were discussing options should the offer have lapsed or become withdrawn, as reported.
Low & Bonar manufactures and supplies nonwovens, three-dimensional polymeric structures and technical coated textiles, while Freudenberg produces a variety of products, such as seals and nonwovens to medical components, vibration control products, specialty chemicals, household products, cleaning services, insulation and composite materials, among others.
“The proposed acquisition would raise no competition concerns, because in the markets where the companies' activities overlap, particularly in nonwovens for floor coverings, the merged entity will continue to face increasing competition from other suppliers,” the EC said in a statement.
Low & Bonar have available debt facilities of £130.9 million and leverage of 5.6x, as reported.
Relevant Documents:
Low & Bonar Scheme
Low & Bonar Competition Clearance
EC Press Release
Freudenberg Press Release
The European Commission has approved Freudenberg’s acquisition of U.K. building materials company Low & Bonar, according to a release on April 17.
The commission has granted an unconditional phase 1 clearance under the EU Merger Regulation and completion is subject to the satisfaction or waiver of the remaining conditions to the offer, including the sanction of the scheme of arrangement by the Scottish Court on May 7, according to the scheme release. Subject to the court sanctioning, the scheme is expected to become effective on May 12. The scheme must be implemented by June 30 at the latest.
On Sept. 20, Low & Bonar’s board recommended a cash offer from Freudenberg to acquire the whole group for 15.5 pence per share which was then approved by shareholders on Nov. 5.
Before the clearance, some investors were concerned that the planned takeover would face delays and Low & Bonar management were discussing options should the offer have lapsed or become withdrawn, as reported.
Low & Bonar manufactures and supplies nonwovens, three-dimensional polymeric structures and technical coated textiles, while Freudenberg produces a variety of products, such as seals and nonwovens to medical components, vibration control products, specialty chemicals, household products, cleaning services, insulation and composite materials, among others.
“The proposed acquisition would raise no competition concerns, because in the markets where the companies' activities overlap, particularly in nonwovens for floor coverings, the merged entity will continue to face increasing competition from other suppliers,” the EC said in a statement.
Low & Bonar have available debt facilities of £130.9 million and leverage of 5.6x, as reported.
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