Low & Bonar (LWB); announces recommended cash acquisition

Published on 23-09-2019 07:24:19
Author Sparks Team

FV Beteiligungs-GmbH (FVB) and Low & Bonar have reached an agreement on the terms of a recommended cash acquisition. Under the terms of the agreement, the entire issued and to be issued ordinary share capital of Low & Bonar will be acquired by FVB, a company wholly and directly owned by Freudenberg SE.

Separately, Low & Bonar announced that the trading conditions that impacted performance in H1 continued in H2. Consequently, group sales in Q3 were lower than expected and profit was below board’s expectations. Although the group is benefiting from slightly lower than expected raw material costs and the impact of cost-saving initiatives put in place recently, it is not expecting that conditions in the group’s markets will improve in the short term.

Daniel Dayan, Low & Bonar’s Executive Chairman, said: “Low & Bonar’s Board is convinced that this offer represents an excellent opportunity to realise the value of the group and that this is the right time for Low & Bonar’s businesses to become part of a much larger and more diverse group.”

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