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Carlyle in $2-billion Sequa deal

July 10, 2007|From Reuters

Private equity firm Carlyle Group said Monday it would buy aircraft and auto parts maker Sequa Corp. for $2 billion.

The $175-a-share offer amounts to a 54% premium to the stock's most recent closing price. Including debt, the deal is worth $2.7 billion.

New York-based Sequa said the estate of founder Norman Alexander and related entities, which hold about 54% of the company, have agreed to vote in favor of the transaction. Alexander died in December.

Sequa makes products for the aerospace, automotive, metal coating, specialty chemical, industrial machinery and other industries. Its ARC Automotive unit makes air bags for Ford Motor Co. and General Motors Corp.

The automotive sector has seen a slew of deals in recent months amid a broad industry restructuring. In the latest move, billionaire investor Carl Icahn, who has been fighting to win approval of his plan to buy auto parts maker Lear Corp., on Monday sweetened his offer for the company.

The Sequa deal, expected to close in the fourth quarter, will be financed through a combination of equity contributed by investment funds affiliated with Washington-based Carlyle and external debt.

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