Danish energy company Danfoss A/S has offered to buy Finnish electric drive maker Vacon for about 1.04 billion euros.
In the tender offer, Vacon shareholders are being offered 34 euros for each share, a premium of 13 percent to the stock’s closing price on Thursday.
Vacon makes variable-speed AC drives, which are used to control the speed of electrical motors. It has around 1,600 employees in 90 countries, and last year its sales amounted to about 400 million euros.
Danfoss is making the offer to ensure its “strategic focus on creating profitable growth,” it said. Vacon is a “good match” to this ambition and Danfoss will combine the two companies’ AC drive units, it said.
Vacon said its board of directors unanimously recommended the owners to accept the offer.
The possible deal has to be approved by competition authorities.
Read more at www.vacon.com