Glynwed to buy out Victaulic
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Glynwed is adding Victaulic to its diversified collection of engineering companies - paying almost pounds 145m in cash and shares for the pipe and fittings manufacturer.
The agreed deal was well received. Shares in Glynwed eased 8p to 325p. Glynwed is offering three of its shares plus 329p in cash for every four shares held in Victaulic. The terms value each Victaulic share at 326p against yesterday's stock market price of 323p, up 48p. Gareth Davies, chairman of Glynwed, said: "The enlarged group will be able to offer wider, complementary product ranges, access to new markets and broader geographical coverage."
The takeover comes at a time when Victaulic is struggling to offset the fall in orders from British Gas for pipes and fittings. David Stewart, managing director of Victaulic, yesterday warned that a shortfall in sales would hit current year results. However, good progress had been made in reducing the company's dependence of the UK gas and water industries.
In contrast, all of Glynwed International's businesses at the end of the first quarter were well ahead of last year. The company added yesterday that it was on course for another significant increase in earnings this year.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments