Edwards Group Limited
) on Oct 4, 2013 gained 0.4% over its previous day's closing
price, as the news of the company's shareholders approval on
merger with Atlas Copco Group was announced.
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As per the terms of the agreement entered into on Aug 19, Edwards
Group will be acquired by a subsidiary of Altas for roughly
$10.50 per share in cash. The whole transaction has been valued
at approximately $1.6 billion, including debt.
The per share merger consideration includes $9.25 of fixed cash
payment to Edwards Group and the rest ($1.25 per share) is
contingent upon the company achieving its guidance for 2013. The
company's value has been fixed at a premium of 11%-26% over
Edwards Group's 30 day average closing share price of $8.33 up to
August 16, 2013.
Both the parties of the merger agreement have already received a
go ahead from their respective board of directors. The merger is
likely to consummate in the first quarter 2014.
Edwards Group Limited is an industrial technology company engaged
primarily in the manufacture and sales of vacuum products and
abatement systems. The merger with Atlas will work in favour of
the company's existing shareholders.
A couple of days back, Edwards Group had increased its third
quarter 2013 revenue and net income guidance. The revision was
the outcome of solid revenue growth - on the back of the
company's Semiconductor and Flat Panel revenues experienced in
The revised guidance range now stands at £177-180 million versus
the previous guidance range of £160-175 million provided during
the second quarter 2013. Net income is anticipated to grow in
excess of previously provided guidance range of £17-25 million.
The Zacks Consensus Estimate for Edwards Group is currently
pegged at 94 cents for 2013, representing year-over-year growth
of 20.5%. Long-term earnings growth rate stands at 10.0%.
Edwards Group currently has a market capitalization of $1.1
billion. Other stocks to watch out for in the industry are
The Babcock & Wilcox Company
), each holding a Zacks Rank #2 (Buy).