General Electric Co. (GE) on Monday said it would buy Osmonics Inc., a maker of water filtration systems, for about U.S. $253 million in stock and cash to expand the product offerings and technological reach at its GE Water unit.
Shareholders of Osmonics will reportedly receive $17 of GE common stock for each share of Osmonics, GE said. They may choose to receive cash, subject to a limit that no more than 55 percent of the overall purchase price is paid in cash.
Osmonics, which is based in Minnetonka, MN, U.S, reported sales of $207 million in 2001.
GE's offer represents a premium of more than 25 percent above Osmonics' closing New York Stock Exchange price on Friday of $13.50. Shares of Osmonics rose $3.30, or 24.4 percent, to $16.80 in morning trading on the New York Stock Exchange Monday.
The deal is expected to be completed during the first quarter of 2003. Once the sale is final, Osmonics will be folded into GE Water, a unit of GE Power Systems. (Reuters)
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