- THE MAGAZINE
Gardner Denver will pay $40 a share for Thomas, whose stock closed at $39.92 on Tuesday on the New York Stock Exchange.
Including the assumption of Thomas' long-term capitalized lease obligations, and net of cash and short-term investments on Thomas' balance sheet, the deal is worth $476.4 million, Gardner said.
Thomas will become a subsidiary of Gardner. The deal, already approved by the companies' boards of directors, is expected to close this year.
Gardner Denver said it has received a debt commitment from Bear, Stearns & Co. and JP Morgan Chase Bank to fully finance the acquisition.
It said it plans to finance the deal through an amended and expanded senior secured bank facility and a public offering of about $200 million in stock. It said it may also tap the debt market.
The deal is expected to add to Gardner Denver's diluted earnings per share within 12 months of closing, after taking into account the proposed equity and debt financing and expected cost savings.