Summary
Allegheny Technologies Incorporated (ATI) announced on November 17, 2010, that it has entered into a definitive merger agreement with Ladish Co., Inc. This agreement outlines the terms for ATI to acquire Ladish through a combination of cash and ATI common stock. The transaction involves a two-step merger process where Ladish will ultimately become a wholly owned subsidiary of ATI. This strategic move is expected to enhance ATI's market position and expand its operations. The merger consideration for Ladish shareholders will be $24.00 in cash and 0.4556 shares of ATI common stock per share of Ladish common stock. The consummation of the merger is subject to several conditions, including the approval of Ladish shareholders, regulatory approvals under the Hart-Scott-Rodino Act, and the effectiveness of ATI's stock registration statement. Investors should note that while ATI is disclosing the agreement, the representations and warranties are made between the parties and may not reflect the actual state of either company's condition.
Key Highlights
- 1ATI enters into a definitive merger agreement to acquire Ladish Co., Inc.
- 2The acquisition will be a combination of cash and ATI common stock, with Ladish shareholders receiving $24.00 cash and 0.4556 shares of ATI common stock per Ladish share.
- 3The transaction is structured as a two-step merger, with Ladish becoming a wholly owned subsidiary of ATI.
- 4Key conditions for the merger include Ladish shareholder approval and expiration of the Hart-Scott-Rodino Act waiting period.
- 5ATI will issue shares of its common stock as part of the merger consideration, requiring an effectiveness of a registration statement and listing on the NYSE.
- 6The merger agreement includes customary representations, warranties, and covenants from both ATI and Ladish.
- 7Ladish may be required to pay ATI a termination fee of $31.0 million under specified circumstances.