Cookson To Buy Steel Company Foseco for $1 Billion

Maker of parts for the ceramics, electronics and precious metals markets hopes acquisition will save company nearly $37 million a year.

LONDON (AP) — Cookson PLC, a maker of parts for the ceramics, electronics and precious metals markets, said Thursday it agreed to buy steel and foundation company Foseco PLC in a deal that values the company at euro718 million (US$1.01 billion).
 
Foseco shareholders will receive euro4.26 (US$6.02) in cash for each share they own, Cookson said in a statement. That represents a premium of about 31 percent over Foseco's closing price on Oct. 1, the last business day before the company's announcement that it was in talks about a possible takeover by Cookson.
 
''Foseco has a strong record of growth in revenue, profitability and cash generation,'' Cookson said.
 
Cookson expects the acquisition to generate cost savings of euro26.1 million (US$36.7 million) a year in the second 12-month period following the acquisition.
 
''The directors of Foseco ... consider the terms of the acquisition to be fair and reasonable,'' Cookson said.
 
Cookson shares gained 1.5 percent to euro12.05 (US$17.02) in London. Foseco shares climbed 0.3 percent to euro4.11 (US$5.82).
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