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Robertshaw OKs Merger Offer by British Company

September 23, 1986|Associated Press

RICHMOND, Va. — Siebe PLC, a British engineering and safety products company, said Monday that it will buy Robertshaw Controls for $469 million.

The purchase will take place through a cash tender offer for Robertshaw's 5.5 million outstanding shares, followed by a merger between the Richmond company and a U.S. subsidiary of Siebe, the companies said.

Robertshaw, a manufacturer of automatic control equipment and control systems, said in July that it was for sale.

The company had sales of $413 million and pretax income of $40.5 million for fiscal 1985. It employs 7,600 people at 23 plants in the United States and has 1,300 employees at facilities in seven other countries.

For the fiscal year ended March 31, Siebe had sales of $860 million and pretax income of $50 million.

The Siebe subsidiary will begin a cash tender offer this week for all of the approximately 5.5 million Robertshaw common shares outstanding. Reynolds Metals has agreed to tender all its Robertshaw shares. Reynolds, through a subsidiary, owns about 41% of Robertshaw's shares.

Robertshaw's directors unanimously approved it at a meeting here Saturday.

"We are extremely excited about our combination with Robertshaw," said Barrie Stephens, group managing director and chief executive of Siebe. "It is a well-managed company with a fine, well-established reputation within its markets and high-quality, technologically sophisticated product lines that complement our lines."

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