By Lisa Kerner
Charlotte, N.C., Nov. 26 - Philips Holding USA Inc. agreed to acquire the Genlyte Group Inc. in an all-cash transaction valued at some $2.7 billion, or $95.50 per share.
The merger, slated to close in the first quarter of 2008, will create "one of the world leaders in lighting fixtures, controls and related products," a Genlyte news release stated.
Philips will begin a tender offer for Genlyte stock within 10 business days of Nov. 25.
Genlyte's board unanimously approved the offer and recommended its stockholders tender their shares in the deal.
"This offer creates outstanding value for our stockholders and enables our management and talented associates to continue our successful strategy," Genlyte chairman and chief executive officer Larry K. Powers said in the release.
"We are especially pleased that we have the opportunity to build upon these assets as we join an entity that understands the lighting fixtures and controls industry and can bring us extensive creative solutions and financial resources to further grow our business," Powers added.
Genlyte was advised by McDermott Will & Emery LLP, Sagent Advisors Inc. and J.P. Morgan Securities Inc.
Based in Louisville, Ky., Genlyte manufactures lighting fixtures, controls and related products for the commercial, industrial and residential markets.
Philips Holdings USA is a subsidiary of Koninklijke Philips Electronics NV, an electronics company based in Amsterdam.
| Acquirer: | Philips Holdings USA Inc.
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| Target: | Genlyte Group Inc.
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| Announcement date: | Nov. 26
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| Transaction total: | $2.7 billion
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| Price per share: | $95.50
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| Expected closing: | First quarter of 2008
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| Stock price of target: | Nasdaq: GLYT: $62.67 on Nov. 23
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