Candover takes Stork private for EUR1.5bn

Candover has announced that it is intending to make a cash offer of EUR48.50 per ordinary share for Stork NV, which values the company at approximately EUR1.5bn. The deal also involves the sale of Stork's food systems division to Marel Food Systems for EUR415m on a cash and debt-free basis (see page 25).

Candover had withdrawn its initial offer in September 2007 after the support of LME Holdings, which raised its stake in the company to more than 43%, could not be secured. Owned by Landsbanki Islands and Eyrir Invest, LME also includes Marel, which had been trying to buy Stork's food service business for a long time. LME has now expressed its support, along with Centaurus Capital and Paulson, which collectively own 33% of the company.

Candover officials have reportedly said that the cost of financing the deal turned out to be 20% higher than projected prior to the credit squeeze. The leverage also fell from 6.5x operating profits to 5x, but Candover is hoping to improve the financing terms in time.

Apart from food systems, Stork is also active in technical services and aerospace, supplying components to Boeing and Airbus. The company's turnover was EUR2bn in 2006, up by 5% on 2005, with net profits amounting to EUR150m.

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