Commercial chemicals and cleaning solutions company Campbell Brothers Ltd
(ASX:CPB) has announced its intention to make an offer for metallurgical testing consultancy company Ammtec Ltd
(ASX:AEC).
Ammtec shareholders will have the choice of two options; cash of $3.35 a share or an all share alternative of 2 Campbell Brothers shares for every 17 Ammtec shares held.
The cash offer represents a 33% premium to Ammtec’s last closing price of $2.51 a share yesterday, and values Ammtec at around $123 million.
Campbell Brothers says it believes the offer represents a highly attractive multiple of 19 times Ammtec’s after tax earnings for the year ended June 30, 2009.
Campbell Brothers managing director, Greg Kilmister says the acquisition of Ammtec will provide the company with the opportunity to roll-out Ammtec’s specialized testing capability globally and to leverage the combined expertise of both companies to pursue new business initiatives.
Campbell Brothers earned $106.21 million for the 12 months to March 30, 2009.
