Steel Announces Plans to Acquire Butler Manufacturing
Ltd. of Melbourne, Australia, has announced it will acquire Butler
Manufacturing Co., parent company of Terrell, Texas-based Vistawall
Group. BlueScope said it would offer $22.50 (USD) per share for
approximately 6.4 million shares, and assume net debt of $60 million,
representing a total outlay of $204 million. The two companies have
reached an agreement on the terms of a negotiated merger agreement,
and, according to a news release issued by BlueScope, the Butler
board of directors will recommend that shareholders accept the BlueScope
offer. The acquisition is subject to approval by Butler shareholders
and by regulatory authorities in the United States. The acquisition
is expected to be complete within three months.
Steel appreciates the value of Butler's many strong brands, including
its leading-brand Butler pre-engineered metal buildings, industry-leading
distribution and our excellent design expertise and technical capabilities,"
said John Holland, Butler chief executive officer. "Being part
of their organization will accelerate the revitalization of our
North American buildings operations and enable BlueScope Steel to
combine forces with Butler's outstanding China business to capitalize
on the opportunities we have in this dynamic region while opening
the door to more global potential."
According to Butler, the acquisition is consistent with its desire
to strengthen operations. The company announced last October that
its board had authorized management to explore various strategic
operations, including solicitation of private investment capital,
asset sales and the sale of the company.