BICC Plc has made a $44m cash bid for the Andover, Massachusetts manufacturer of advanced electronic building automation systems, Andover Controls Corp. BICC is offering $16 per share to acquire Andover which has annual sales of $23m and net assets valued at $8m. The Andover board is recommending the offer but so far only 21% of the company’s common stock has been irrevocably committed to the deal, while BICC requires a minimum of 66% to make the acquisition viable. Should the deal go through, however, the Andover mangement team will remain with the company as it operates from within BICC’s Technologies division, complementing the management systems expertise of Transmitton and BICC Network Systems. The acquisition is clearly being financed from the disposal of BRIntec’s connector interests. For BICC has recently completed its $177m cash offer for BRIntec and is integrating the company’s four Brand-Rex divisions into its Cablec group. However, at the same time it has irrevocable agreement for the sale of the connector business to LPL Investment Group Inc, parent company of electrical and electronic manufacturer Amphenol Corp. this sale of BRIntec’s connector interests which have a book value of $47.5m are generating $62.5m cash for BICC. Meanwhile dealings in the 22m ordinary shares which BICC issued to finance the acquisition of BRIntec begin today.
