Siemens to buy Moore Process Automation Solutions
To expand its process automation and North American presence, Siemens Energy & Automation Inc., a subsidiary of Siemens AG (Munich, Germany), agreed Jan. 17 to acquire Moore Process Automation Solutions for $170 million.The two companies agreed that, by Jan.
To expand its process automation and North American presence, Siemens Energy & Automation Inc., a subsidiary of Siemens AG (Munich, Germany), agreed Jan. 17 to acquire Moore Process Automation Solutions for $170 million.
The two companies agreed that, by Jan. 21, a wholly owned subsidiary of Siemens Energy & Automation will make an all-cash tender offer for all of Moore's outstanding common stock at a price of $54.71 per share and all outstanding preferred stock at a price of $21.88 per share. The common stock offer price represents an approximate 28% premium over Moore's closing price on Jan. 14, 2000. After the tender offer is successfully completed, any of Moore's remaining shares will be acquired in a cash merger at the same prices.
Moore's board of directors has already approved the tender offer. Likewise, shareholders representing about 55% of Moore's voting power on a fully diluted basis have agreed to tender their shares into Siemens Energy & Automation's offer.
"This acquisition unites one of the largest electrical engineering and electronics companies in the world with a company that offers leading automation technology and services to process industries," says Donald Bogle, Moore's president and ceo.
Thomas Mallott, Siemens E&A's president and ceo, says "Moore's expertise and advanced technologies will enhance our portfolio of process automation solutions to key customers around the world."
Rich Dunbar, Moore's marketing vp says, "The Siemens/Moore relationship permits Siemens to accelerate growth plans into the process automation markets by leveraging Moore's long-term history, established expertise, talents, and technologies designed for process control and automation applications."
When asked about impacts to distribution channels, Mr. Dunbar explained, "Siemens views Moore's network of representative-based sales offices as key to the success of this acquisition. Our representatives know their customers and are intimately involved in solving customer business problems. Adding Siemens products and engineering services to those solutions strengthens the representatives' ability to deliver complete solutions."
Dave Harrold, senior editor, email@example.com