ABB/Thomas & Betts Corp.
On January 30, 3012, ABB (NYSE: ABB), and Thomas & Betts Corporation (NYSE: TNB), have agreed to a transaction in which ABB will acquire Thomas & Betts for $72 per share in cash or approximately $3.9 billion.
Closing is expected in mid-2012.
ABB has secured a $4 billion, fully underwritten bridge financing commitment from Bank of America Merrill Lynch which will be repaid through a combination of cash and the issuance of debt. The transaction is expected to be accretive within the first year after it closes prior to one-time charges and implementation costs. ABB expects the transaction will deliver approximately $200 million in annual synergies by 2016. The majority of cost synergies are expected to come from sourcing and purchasing efficiencies.
Under the terms of the agreement, the transaction is structured as a merger requiring approval of a majority of Thomas & Betts shareholders at a special meeting, which is expected to take place in the second quarter. Closure of the transaction is also conditioned on customary regulatory approvals, including in both North America and Europe.
Bank of America Merrill Lynch acted as financial adviser to ABB and will provide the bridge financing facility and Kirkland & Ellis LLP acted as legal advisor.
Closing is expected in mid-2012.
ABB has secured a $4 billion, fully underwritten bridge financing commitment from Bank of America Merrill Lynch which will be repaid through a combination of cash and the issuance of debt. The transaction is expected to be accretive within the first year after it closes prior to one-time charges and implementation costs. ABB expects the transaction will deliver approximately $200 million in annual synergies by 2016. The majority of cost synergies are expected to come from sourcing and purchasing efficiencies.
Under the terms of the agreement, the transaction is structured as a merger requiring approval of a majority of Thomas & Betts shareholders at a special meeting, which is expected to take place in the second quarter. Closure of the transaction is also conditioned on customary regulatory approvals, including in both North America and Europe.
Bank of America Merrill Lynch acted as financial adviser to ABB and will provide the bridge financing facility and Kirkland & Ellis LLP acted as legal advisor.
S&P Announces Changes to US Indices: LRCX for NVLS in S&P 500, RGLD for LRCX, TPX for TNB in MidCap 400, GSM for DFG in SmallCap 600
S&P MidCap 400 constituent Lam Research Corp. (NASDAQ: LRCX) will replace Novellus Systems, Inc. (NASDAQ: NVLS) in the S&P 500 index and Royal Gold, Inc. (NASDAQ: RGLD) will replace Lam Research in the S&P ...
3 total articles have been posted to this entity.
Click Here to Sign-Up for StreetInsider.com Premium to View All
