By Helena Smolak
Shares in Stabilus rose in early trade on Thursday after the company said it is set to purchase Destaco, a unit of U.S. manufacturer Dover, for $680 million including debt to expand its industrial-automation business.
At 0744 GMT, shares in Stabilus rose 3.7% to EUR54.55, having fallen 1.9% shortly after the market opened.
German industrial and automotive supplier Stabilus said the acquisition is part of a long-term strategy to expand its industrial-automation portfolio and is expected to result in boosts to its sales with an immediate benefit on its adjusted earnings before interests and taxes margin after completion in the first half of 2024.
Destaco offers complementary products in industrial automation and achieved revenue of $213 million in 2022, Stabilus said.
Stabilus hopes the acquisition will bring substantial growth, tax benefits and synergies in future years, aiming to achieve a balanced revenue split between the automotive and industrial business units, it said.
The company plans to finance the transaction using its own cash, an unused revolving credit facility, and a bridge facility.
Write to Helena Smolak at [email protected]
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