Alfa Laval withdraws Munters bid but targets further acquisitions
The Swedish engineering company confirmed it would not be raising its SEK 75 per share bid after Munters, which manufactures humidity control systems for the food processing sector, offered SEK 77 per share.
Alfa needed more than 90 per cent of Munters shareholders to accept the offer before it could go through. However, it said that less that one per cent of shareholders had backed its move at the end of the acceptance period last Friday.
"Since it is clear that this condition is not fulfilled, Alfa Laval will not complete the offer," said the company in a statement.
Correct decision
Alfa Laval's chief financial officer Thomas Thuresson said he felt the company had made a correct decision in withdrawing its bid for Munters, according to Dow Jones.
"We did not want to yield to the temptation to call this acquisition strategic and go through with it, without being able to add significant value," he said.
The company remained on the look out for acquisition targets, he added.
"There is constantly a group of companies that we are looking at and discussing with,” said the finance chief. “The past six years we have gone through with at least one acquisition every quarter and our aim is to add between 3 per cent and 4 per sales through acquisitions yearly. We are on track with that aim.”
