ROPER INDUSTRIES, INC. ANNOUNCES A MAJOR ACQUISITION
Bogart, Georgia, July 30, 2001 … Roper Industries, Inc. (NYSE: ROP) announced that its Board of Directors has approved the acquisition of the stock of Struers Holdings A/S for a purchase price of approximately $139 million in cash net of assumed debt, the largest transaction in Roper’s history.
The company had twelve-month trailing revenues of approximately $79 million, and the purchase price represents approximately 7 times first year expected EBITDA. The transaction is expected to close in late August or early September, subject to certain approvals, and is expected to be immediately accretive.
Struers Holdings consists of two distinct operating businesses, Struers A/S and Logitech Ltd. Struers A/S, the larger of the two businesses with revenues of approximately $60 million, is based in Roedovre, Denmark. Struers is a global leader in developing, manufacturing and marketing of materialographic preparation equipment and consumables used in quality inspection, failure analysis and research of solid materials. Logitech, headquartered in Glasgow, Scotland, is a global leader in high precision material shaping equipment used principally in the production of advanced materials for the semiconductor and opto-electronics markets. The companies share sales offices in Europe, the US and Japan.
“Struers and Logitech are excellent additions to Roper,” stated Derrick N. Key, Roper CEO and Chairman. “They manufacture highly-engineered products, have leading positions in markets with good growth prospects and produce strong financial results that will expand Roper’s already high margins. These companies provide an entry point into new markets and extend Roper’s offerings into markets served by our digital imaging business group. Over time, we expect to improve upon the already strong performance of these businesses.
“Earlier this year we announced our growing capacity for acquisitions, both through our increasing cash flow and the expansion of our Business Development team. This transaction reflects the acceleration of our successful deal process, and a commitment to put our capacity to work in our disciplined manner. This is our largest transaction in terms of absolute price, but it fits within our historic range when compared with our current business levels and financial strength.”
The two companies will be reported in the Analytical Instrumentation Segment.
Source: Roper Technologies, Inc