6309 Monarch Park Place, Suite 203
Niwot, CO 80503, USA
Phone (303) 443-5060
Toll free (888) 742-5060
Denison's annual revenues are $180 million.
The agreement, subject to customary regulatory approvals and certain closing conditions, calls for Denison shareholders to receive $24 in cash for each Denison ordinary share, including those represented by American Depositary Shares, and each Denison ﾑA' ordinary share. As part of the transaction, which is expected to close in the first quarter of 2004, Parker will acquire Denison's cash at closing. As of Sept. 30, 2003, Denison's balance sheet reflected $56.2 million in cash with $0.8 million in notes payable.
"Denison is among the best performers in the industry, with a well established footprint in international markets for industrial hydraulics, including solid, profitable performance in Europe and a significant presence in Asia, all of which will be additive to our profitability and growth acceleration plans, especially in China," said Parker President and CEO Don Washkewicz.
"We are very excited about the prospects of this combination," said Parker Hydraulics Group President Lee Banks. "Denison has additional systems capabilities we can bolt onto our business, and brings a number of complementary technologies, including vane pumps, hydrostatics and a digitally controlled fan-drive system."
With annual revenues of $180 million, 61 percent of Denison's business is in Europe. Denison employs 1,150 people in Europe, Asia and North America. "Strategically and culturally, our organizations are a good fit, with common principles of conservative management and long-term value creation, reflected in both our balance sheets and our ability to attract and retain talented, hard working people," Banks said.
Parker noted that Denison shareholders holding approximately 47 percent of the ordinary shares (including those represented by American Depositary Shares), and more than 90 percent of the ﾑA' ordinary shares, have entered into agreements to tender their shares in response to Parker's offer.
Denison International plc is an industrial manufacturer and service provider for highly engineered hydraulic fluid power systems and components. Lazard Freres & Co. LLC is acting as the investment banker to Denison in the transaction.