In a deal that creates a global plastic pipe manufacturing business, Wavin NV has accepted a bid of 10.50 euros per share ($13.94) from Mexichem SAB de CV, the Mexican chemicals giant.
The offer follows two unsuccessful attempts by Mexichem to buy Wavin tabled late last year, and values the Zwolle, Netherlands-based group at around 531 million euros ($704 million).
In December, Wavin announced it was granting Mexichem access to its books, having received assurances on a number of issues relating to a possible post-takeover environment for the company, including strategy and employees' futures.
In a joint statement the two businesses said there was a “compelling strategic rationale” for the takeover.
The combined group will have “stronger design, engineering and R&D capabilities whilst leveraging Mexichem's low-cost manufacturing platform,” as well as having “a more diversified end-market profile across the residential, non-residential and infrastructure segments, exposing it to different eco- nomic and construction cycles.”
Despite the takeover Wavin is set to retain its own corporate identity, including its brand in the Netherlands, as well as retaining its current employment structure, including pension rights for its staff.
According to the statement issued by both companies, no jobs will be lost as a result of the takeover, and “key management” at Wavin will be retained.
Speaking about the deal, Ricardo Gutiérrez Muñoz, executive committee president at Mexichem, said the geographic footprint and product portfolio of Wavin and Mexichem are “highly complementary and together we will be exceptionally positioned to capitalise on growth opportunities.
“We welcome Wavin to the Mexichem group and are excited about the opportunity of working with the Wavin management team,” he added.
Henk ten Hove, Wavin's chief executive, said the Mexichem offer provides an opportunity for Wavin to join forces with a leading plastic pipe systems company while “preserving our history, culture and assets such as our brand, our broad portfolio and our innovative power.”
The deal is expected to be complete by the end of March.