Parker Hannifin and Denison International Sign Agreement for Parker to Acquire Denison Shares in a Cash Tender Offer of $24 Per
December 08 2003 - 9:07AM
PR Newswire (US)
Parker Hannifin and Denison International Sign Agreement for Parker
to Acquire Denison Shares in a Cash Tender Offer of $24 Per Share
-- Combination To Strengthen Parker's Lead In Total Systems For
Motion & Control CLEVELAND, Dec. 8 /PRNewswire-FirstCall/ --
Parker Hannifin Corporation and Denison International plc today
announced they have signed a definitive agreement for Parker to
acquire Denison in a cash tender offer. The agreement, which is
subject to customary regulatory approvals and certain closing
conditions, calls for Denison shareholders to receive $24 in cash
for each Denison ordinary share, including those represented by
American Depositary Shares, and each Denison 'A' ordinary share. As
part of the transaction, which is expected to close in the first
quarter of 2004, Parker will acquire Denison's cash at closing. As
of September 30, 2003, Denison's balance sheet reflected $56.2
million in cash with $0.8 million in notes payable. (Photo:
http://www.newscom.com/cgi-bin/prnh/19990816/PHLOGO ) "Denison is
among the best performers in the industry, with a well established
footprint in international markets for industrial hydraulics,
including solid, profitable performance in Europe and a significant
presence in Asia, all of which will be additive to our
profitability and growth acceleration plans, especially in China,"
said Parker President and CEO Don Washkewicz. Parker Hydraulics
Group President Lee Banks said, "We are very excited about the
prospects of this combination. Denison has additional systems
capabilities we can bolt onto our business, and brings a number of
complementary technologies, including vane pumps, hydrostatics and
a digitally controlled fan-drive system." With annual revenues of
approximately $180 million, 61 percent of Denison's business is in
Europe. Denison employs approximately 1,150 people in Europe, Asia
and North America. "Strategically and culturally, our organizations
are a good fit, with common principles of conservative management
and long-term value creation, reflected in both our balance sheets
and our ability to attract and retain talented, hard working
people," Banks said. Denison Chairman J. Colin Keith said, "Denison
is very pleased and excited about joining the Parker organization.
Our companies complement each other in many areas, and the addition
of Denison technologies and system capabilities will enhance the
already strong contributions of Parker's product and system
offerings to the hydraulics industry. We also feel the combination
will offer current and long term strategic benefits for our
customers, business associates and employees." Parker noted that
Denison shareholders holding approximately 47 percent of the
ordinary shares (including those represented by American Depositary
Shares), and more than 90 percent of the 'A' ordinary shares, have
entered into agreements to tender their shares in response to
Parker's offer. Denison International plc is an industrial
manufacturer and service provider for highly engineered hydraulic
fluid power systems and components. Lazard Freres & Co. LLC is
acting as the investment banker to Denison in the transaction. For
more information about Denison and its products, please visit
http://www.denisonhydraulics.com/ . With annual sales of $6
billion, Parker Hannifin is the world's leading diversified
manufacturer of motion and control technologies and systems,
providing precision-engineered solutions for a wide variety of
commercial, mobile, industrial and aerospace markets. The company
employs more than 46,000 people in 44 countries around the world.
Parker has increased annual dividends paid to shareholders for 47
consecutive years, which is among the top five longest-running
dividend-increase records in the S&P 500. For more information,
visit the company's web site at http://www.parker.com/ . Note: A
slide presentation with additional information about the
transaction is available to all interested parties on Parker
Hannifin's investor relations web site at http://www.phstock.com/ .
Securities Legend: This announcement is neither an offer to
purchase nor a solicitation of an offer to sell securities of
Denison International plc. At the time the expected tender offer is
commenced, Parker Hannifin Corporation will file tender offer
materials with the Securities and Exchange Commission (the "SEC")
and Denison International plc will file a
solicitation/recommendation statement with respect to the tender
offer. The tender offer materials, including an offer to purchase,
a related letter of transmittal and other offer documents, and the
solicitation/recommendation statement will contain important
information. Shareholders of Denison International plc should read
this information carefully before making any decisions about the
tender offer. The tender offer materials, certain other offer
materials, and the solicitation/recommendation statement will be
sent to all shareholders of Denison International plc free of
charge. In addition, all of these materials will be available free
of charge on the SEC's website at http://www.sec.gov/ .
Forward-Looking Statements: Parker Hannifin: Forward-looking
statements contained in this and other written and oral reports are
made based on known events and circumstances at the time of
release, and as such, are subject in the future to unforeseen
uncertainties and risks, including the ability to successfully
consummate the announced transaction. All statements regarding
future performance, earnings projections, events or developments
are forward-looking statements. It is possible that the future
performance of the company may differ materially from current
expectations depending on economic conditions within its industrial
markets, and the company's ability to achieve anticipated benefits
associated with announced realignment activities, strategic
initiatives to improve operating margins, and growth initiatives. A
change in economic conditions in individual markets may have a
particularly volatile effect on segment projections. Among the
other factors which may affect future performance are: changes in
business relationships with and purchases by or from major
customers or suppliers, including delays or cancellations in
shipments; uncertainties surrounding timing, successful completion
or integration of acquisitions; threats associated with and efforts
to combat terrorism; competitive market conditions and resulting
effects on sales and pricing; increases in raw-material costs that
cannot be recovered in product pricing; and global economic
factors, including currency exchange rates, difficulties entering
new markets and general economic conditions such as interest rates.
The company makes these statements as of the date of this
disclosure, and undertakes no obligation to update them. Denison
International: Certain matters discussed in this press release are
"forward-looking statements" intended to qualify for the safe
harbors from liability established by the Private Securities
Litigation Act of 1995. Such forward- looking statements are
subject to certain risks and uncertainties, which could cause
actual results to differ materially from those currently
anticipated. Shareholders, potential investors and other readers
are urged to consider these factors carefully in evaluating the
forward-looking statements. The forward-looking statements made
herein are only made as of the date of this press release and
Denison International plc undertakes no obligation to publicly
update such forward-looking statements to reflect subsequent events
or circumstances.
http://www.newscom.com/cgi-bin/prnh/19990816/PHLOGO DATASOURCE:
Parker Hannifin Corporation CONTACT: Media, Lorrie Paul Crum, VP -
Corp. Communications, +1-216-896-2750, or After hours,
+1-330-666-4196, or , or Financial Analysts, Pamela Huggins, VP
& Treasurer, +1-216-896-2240, or , both of Parker Hannifin
Corporation; or Bruce A. Smith, Chief Financial Officer &
Director of Denison International plc, +1-937-644-4437 Web site:
http://www.phstock.com/ http://www.denisonhydraulics.com/
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