Thomas & Betts Corporation on August 15 announced that it has signed a definitive agreement to acquire Lamson & Sessions in an all-cash transaction valued at $27.00 per share or approximately $450 million. The company has committed debt financing to fund the transaction. Subject to the satisfaction of customary closing conditions and the approval of Lamson & Sessions’ shareholders, the transaction is expected to close in late 2007.
“This acquisition is a great fit with Thomas & Betts and is consistent with our strategy of expanding our portfolio of market-leading brands and leveraging our business infrastructure to enhance our already strong relationship with distributors and end users of electrical products,” said Dominic J. Pileggi, chairman and chief executive officer. “Lamson & Sessions is a well-known, leading North American supplier of non-metallic electrical boxes, fittings, flexible conduit and industrial PVC pipe. The company enjoys a well-deserved reputation for delivering high-quality products and best-in-class customer service. Its Carlon brand and trademarked Blue Box are the most recognized non-metallic electrical outlet boxes in the industry.”
For the calendar year 2008, Thomas & Betts’s preliminary assessment is that the acquisition will contribute approximately $500 million to revenues and be accretive to earnings by approximately $0.15 to $0.20 per share. This estimate includes the elimination of certain public company administrative costs which should offset the amortization of acquisition-related intangible assets. Potential operational efficiencies are expected to provide additional future benefits. In addition, the company is assessing strategic options regarding the PVC pipe business.
Thomas & Betts Corporation is a leading manufacturer of electrical components used in construction, industrial and utility markets. The company is also a leading producer of commercial heating and ventilation units and highly engineered steel structures used primarily for utility transmission. Headquartered in
