ERIKS group nv has made an offer for valve manufacturer Royal Econosto N.V. for €7.80 in cash per share, or €126 million (about US$200 million with current exchange rates). The bid counters an offer from buyout firm Gilde Buy Out Partners BV of €7.25 a share.
According to a Bloomberg report, Gilde has five days to make a counteroffer.
Econosto has two divisions: flow and sealing technology (the production, sale and distribution of valves, gaskets, sealing products, hoses, couplings, instrumentation systems, chemical seals, etc.); and Comfort and Environmental Technology (production and sale of domestic and industrial HVAC and energy systems and services.)
ERIKS supports Econosto's international growth strategy and the proposed acquisition will contribute to an accelerated realization of this strategy, which fits well into ERIKS' own strategy, whereby ERIKS sees Econosto's current activities in the Middle East as an exciting opportunity to further establish its international footprint," ERIKS said in a statement.