MSA Safety To Buy Latchways For £11/shr - Quick Facts

(RTTNews) - Global safety equipment manufacturer MSA Safety Inc. (MSA) announced the terms of a proposed cash acquisition of United Kingdom-based Latchways plc (LTC.L), a provider of innovative fall protection systems and solutions, for 11 pounds per share.

The Proposed acquisition is valued at about 124 million pounds or approximately $191 million, implying an enterprise value for Latchways of 114 million pounds, or approximately $176 million.

The purche price represents a premium of approximately 53 per cent. to the Closing Price of 720 pence per Latchways Share on 28 August 2015, being the last Business Day prior to the date of this Announcement.

Latchways said its directors intends to recommend unanimously that Latchways Shareholders vote in favour of the Scheme at the Court Meeting and the Resolution to be proposed at the General Meeting, as the Latchways Directors who are interested in Latchways Shares have irrevocably undertaken to do in respect of their own beneficial holdings of Latchways Shares, amounting, in aggregate, to 446,805 Latchways Shares, representing approximately 3.98 per cent of the issued ordinary share capital of Latchways as at 28 August 2015, being the last Business Day prior to the date of this Announcement.

MSA Safety expects that transaction will be accretive to earnings in 2016, the first full year of ownership.

MSA Safety noted that the transaction will be funded with existing cash balances held outside the U.S. and incremental borrowing with an after tax cost of less than 2 percent.

This acquisition is expected to close in October of this year.

Founded in 1974, Latchways is a global market leader of permanent engineered fall protection systems, which includes both horizontal lifelines and vertical lifelines. Headquartered in Devizes, U.K., and listed on the London Stock Exchange plc, Latchways reported revenues of 33.1 million pounds, or approximately $51.2 million , for the financial year ended March 31 2015. Latchways has approximately 250 employees.

Latchways Shareholders on Latchways' register of members at the close of business on 14 August 2015 will receive the Latchways Final Dividend of 27.50 pence which will, subject to the approval of the Latchways Shareholders at the annual general meeting of Latchways to be held on 4 September 2015, be paid on 11 September 2015.