Vero agrees to APW takeover

Vero agrees to APW takeover
Melanie Reynolds Vero Group has accepted the takeover deal proposed by one of two US firms chasing the UK enclosure and power system manufacturer. The company has agreed terms for the purchase of its entire issued share capital by Applied Power (APW). An irrevocable undertaking to accept the offer, which values Vero at ?94.4m, has been signed by the directors who hold 16.4 per cent of the shares. In the event of another bid attracting more than 50 per cent of the shares then the undertaking is released. Brian Gay, Vero managing director told EW: “I believe the outlook is very positive with APW because we are complimentary operators. We are strong in Europe whereas their activity is predominantly in the US.” Gay will remain as managing director. However, Pentair, another US industrial manufacturer, is also believed to be interested in launching a takeover bid for Vero, but seems to have been pipped at the post by APW. “We have heard nothing from them (Pentair),” commented Gay. Vero were approached about a takeover bid earlier this year following disappointing results and a fall in share prices. Gay commented: “We have not set out to find a buyer for the Vero group.” US firm APW is a manufacturer and supplier of tools, equipment and systems to electronics manufacturing sectors such as aerospace, defence and computer systems.


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