Advent makes £221.5m bid for Brammer

The offer values shares in the company at 165 pence apiece, a premium of around 69% of its closing share price on Tuesday.

The board of the company said in a statement the challenges of addressing operational issues would be best faced by a private ownership model. It said such a process would "incur significant cash reorganisation costs and take at least three years to implement" adding it would "carry significant execution risk and uncertainty for a public company".

It also cited Advent's track record in the power manufacturing sector and significant equity investment in the deal, which it said would greatly reduce the company's debt burden.

Advent has already received irrevocable undertakings or letter of intent with respect to 16% of Brammer's shares. The deal is expected to be approved at the listed company's upcoming general meeting, should it receive the support of 75% of shareholders.

Founded in 1920 and headquartered in Knutsford, Cheshire, Brammer produces industrial components including bearings, hydraulics, chains, motors, seals, gearboxes, belts and pulleys. It also provides tools, and health and safety products.

The business employs 3,600 people across 23 countries.

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