Royal Bank Private Equity is to buy Expamet, the building and engineering company. Its recommended cash offer of 108p a share has been declared wholly unconditional.
The offer values Expamet at about £69m.
Expament’s shares will be taken off the London Stock Exchange as soon as possible. Stock stands at 106p, up 0.5p from yesterday’s close, valuing the company at about £67.37m.
In a statement, Clifton House Acquisition, a company created to make the offer, said the new ownership would unlock the potential of the business, which would benefit from having a small group of shareholders.
A source close to the deal said the move to private ownership could herald a number of spinoff deals: “It is widely understood that a number of Expamet’s businesses are non-core,” he said.
The deal has taken some time to arrange. The offer of 108p was disclosed in March but discussions had been taking place for several months and the offer originally valued the company below its market cap.
However, Expamet in December released a trading statement saying it had failed to renew a major contract, which caused shares to drop from 118.5p to under 100p.
Senior debt for the deal was arranged by Bank of Scotland.
Expamet was founded in the late 1880s and makes plastering, fence spikes, expanded metal products and hydraulics. It is based in Hartlepool and Cwmbran.