Utc Gets Kidde Fire For 2.8 Billion
The UK-based Kidde supplies fire and safety products including aircraft fire protection systems. It has operating companies in 29 countries, employs approximately 7,750 people and distributes products and services worldwide to commercial, industrial, aerospace, combustion control and retail customers. It reported 2003 revenue of 938 million pounds (approximately $1.53 billion). <?xml:namespace prefix = o ns = “urn:schemas-microsoft-com:office:office” />
The 165 pence offer represents a premium of approximately 34 percent over the closing price of Kidde shares on October 20, the last trading day before UTC’s interest in acquiring the company was disclosed. The transaction is expected to close in the first quarter of 2005 subject to customary conditions including regulatory agency approvals and compliance with required filing and other regulations.
“We are pleased that we were able to reach an agreement with the Kidde board,” said UTC Chairman and Chief Executive Officer George David.
“Kidde’s addition will further enhance UTC’s product portfolios. With Otis elevators, Carrier HVAC systems and Chubb electronic security, we already have a pervasive presence in buildings worldwide. Kidde’s industrial fire protection and suppression products will further augment this presence,” David said.
“Additionally, Kidde makes fire protection systems that equip most of the aircraft flying today.”
Norman Askew, Chairman of Kidde, said, “We believe that this offer is in the interests of Kidde’s shareholders, customers and employees. Kidde’s businesses will benefit from being part of an organization as large as UTC, with the scale and financial resources to compete even more effectively than in the past.