Cypress Group Acquires Amtrol In $218.9 Million Transaction
May 11, 2011
NEW YORK -- A.I. Acquisition Inc., an affiliate of the New York investment company Cypress Group, has agreed to acquire Amtrol Inc. for $218.9 million, or $28.25 a share, the companies said Thursday. Amtrol, a West Warwick, R.I., maker of water-flow and expansion-control technology with annual sales of $172.5 million, said the transaction will allow it to pursue its strategy of international growth and new product development. The offer provides a hefty 39.5% premium over Amtrol's closing price Wednesday. At late morning Thursday, Amtrol shares were up $7.125, or 35.2%, at $27.43. The companies said Amtrol's board had approved the transaction, and holders of 37.8% of its stock have agreed to vote in favor of the combination. The transaction must still be approved by Amtrol's remaining shareholders. The deal is expected to close by year end, the companies said. Amtrol also announced that following the transaction, Johnetta P. Breeding, who resigned as chairman and co-chief executive of R.P. Scherer Corp. last March, would become its chief executive.
