LONDON (Alliance News) - Decontamination solutions provider Bioquell PLC said Friday it has agreed to a GBP140.5 million merger offer from Ecolab US 2 Inc, a unit of US-based water, hygiene and energy technology company Ecolab Inc.
Under the terms of the offer, Bioquell shareholders will receive 590 pence per share in cash. The price represents a premium of 40% to Bioquell's closing price of 420p on Thursday.
It is also a premium of 23% on the three-month volume weighted average closing price per Bioquell share until Thursday, and a premium of 33% on the same figures for the six-month period to Thursday.
Bioquell Chairman Ian Johnson said: "As part of Ecolab, Bioquell will be able to drive faster strategic growth in both life sciences and healthcare markets leveraging Ecolab's extensive global footprint."
"The Bioquell directors believe the strategic fit is extremely strong and that the combination offers employees and customers a highly desirable opportunity to continue Bioquell's successful tradition," Johnson added.
Bioquell said that its directors consider the offer to be "fair and resonable", they are therefore unanimously recommending shareholders to approve it.
Ecolab has received irrevocable undertakings or letters of intent in respect of 12.3 million Bioquell shares, representing 55.10% of the company's issued share capital.
After completion of the deal, Bioquell shares will be delisted from the London Stock Exchange.