Danfoss Buying Rest Of Sauer-Danfoss For $692M
AMES, Iowa (AP) -- Danfoss A/S, a Danish maker of valves and other machine parts, will buy the rest of U.S. company Sauer-Danfoss it doesn't already own for about $692 million after raising its offer.
Danfoss owns 75.6 percent of Sauer-Danfoss Inc., which makes parts for tractors, backhoe loaders and other agricultural and construction equipment. Danfoss had bid $49 percent for the remaining 24.4 percent of the Ames, Iowa, company's shares outstanding in November. The deal announced Friday increases that offer by 19 percent, to $58.50 per share.
That's 8 percent above Sauer-Danfoss' closing price Thursday. Shares rose $4.50, or 8 percent, to $58.65 in premarket trading.
The Danish company will acquire the shares through a tender offer. The deal has been approved by Sauer-Danfoss' board and is expected to close by the end of June.
The acquisition values all of Sauer-Danfoss at about $2.83 billion.