Alent Plc is now being purchased by Billionaire duo Nicolas Berggruen and Martin E. Franklin at an agreed amount of about 1.35 billion pounds ($2.1 billion). The pair is running after expansion of the electronic chemicals part of their investment firm that serves makers of mobile phones and cars.
Alent, which is a U.K. based Company, was not expecting this kind of a bid. It was 49% more. Hence, it rose from 43% to 484 pence with Platform Specialty Products Corp (NYSE:PAH) rising to 1.3% at $25.47 in New York. For a single share, Alent investors will get 503 pence that will either be in cash or partly in shares of the Corp.
The takeover arrangement by Alent was something that was in waiting. It is a deal that had been well curved out from Cookson Group Plc for by activist shareholder Cevian Capital way back in 2012. At this time, there was a consolidation of business within the industry.
There is an annual pretax cost saving by Platform of at least $50 million as it incorporates the business with MacDermid Inc. which was purchased for $1.8 billion in 20.13.
Alent Chief Executive Officer Andrew Heath said that Platform that is having a bet on demand for increased compact technology to fit in mobile phones was keen on what would be said to be a full price. Before any form of taxation, interests, depreciation of amortization, it will pay 13.9 times Alent’s earnings.
According to Heath, the payment will be highest multiple ever paid for any UK specialty chemical company.
This being the latest deal within the electronic chemical industry, it follows closely that of Merck KGaA’s purchase of AZ Electronic Materials that cost $2.8 billion. Before this one, it was the $952 million takeover of ATMI Inc. by Entegris Inc.
Notably the electronic market for cars is growing at a higher rate of the wider automotive industry. It is just earlier in the year when Platform Specialty Products Corp (NYSE:PAH) owned up to obtaining the electronic chemical and photo masks dealings of OM Group for $365 million.
