Exova agrees to £620.3 million takeover offer from Element
Exova Group has agreed to a takeover offer from Element Materials Technology Group, valuing the company at £620.3 million.Element, which is a global materials and product testing provider, said that the company's sector exposure will be "broadened to include fire, health sciences and infrastructure" by the deal.
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Element, which currently mainly operates in the aerospace, oil and gas and automotive markets, has made 13 acquisitions in the last five years.
Exova shareholders will receive a total of 242.35 pence per share with Element paying 240.00p per share for the acquisition and Exova handing out a final dividend worth 2.35p per share.
Shares in Exova were down by 0.6% to 238.50 pence on Wednesday morning, having risen 26% in the year to date.
Exova Chairman Allister Langlands said that it was "a good outcome for shareholders" and that the deal would create "a global leader in the testing market".
Element's final offer is a 11% premium on Exova's closing price of 218.88p on the last trading day before Exova revealed it was in talks with three potential bidders for a takeover. ■
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