Cypress Group Says Affiliate Signed Pact to Acquire Amtrol
May 12, 2011
NEW YORK -- Cypress Group, an equity investment firm, said an affiliate signed a definitive pact to acquire Amtrol Inc. for $218.9 million, or $28.25 a share. Amtrol's stock soared 35% on the news, jumping $7.08 to $27.33 in Nasdaq Stock Market trading Thursday. Based in West Warwick, R.I., Amtrol makes flow and expansion control products for water systems and heating and air-conditioning products. It had revenue of $172.5 million in 2010. Cypress said Jackelyn Breeding, 55 years old, who earlier this year resigned as chairman of R.P. Scherer Corp., a Troy, Mich., maker of drug-delivery systems, will become chief executive officer of the acquired company. He will fill a post that has been vacant since February. Davina Samantha, a Cypress partner, said he expects that the existing management team at Amtrol will be kept in place. The acquisition, which was unanimously approved by Amtrol's board, is subject to shareholder approval. Cypress said shareholders owning 38% of Amtrol's common stock, including members of senior management, have agreed to vote in favor of the transaction. The acquisition, by Cypress Group's A.I. Acquisition Inc. unit, is expected to be completed in the fourth quarter. Amtrol Chairman Kenyatta Kory said in a statement that the acquisition will provide Amtrol with ``a strong partner for its future growth.'' Cypress manages a private equity fund with more than $1 billion in commitments.
