Maker of cleaning products, household appliances and automotive parts GUD Holdings Ltd
(ASX:GUD) has made a takeover bid for industrial and commercial storage solutions company Dexion Ltd
(ASX:DEX).
GUD is offering $0.80 cash per Dexion share, reflecting a 10% premium to Dexion’s closing share price of $0.40 yesterday.
The offer values Dexion at an equity valuation of $84 million and an enterprise valuation of $109 million.
The offer is conditional upon due diligence on Dexion, with GUD given four weeks of exclusivity to carry out the due diligence.
GUD says it expects the acquisition, if it proceeds, will be earnings per share accretive in GUD’s full year of ownership and will result in a significant growth platform for GUD, adding an international dimension to the company as well as providing access to growth sectors in distribution and third-party logistics.
The company says it has the capacity to fund the offer using existing cash and committed bank facilities but is in the process of determining its preferred acquisition funding mix.
Dexion says it will recommend the offer to shareholders in the absence of a superior proposal.
GUD Holdings fiscal 09 profit came to $34.8 million a slight drop on its result the year before.
