Milford, Ind-based CTB International Corp, a manufacturer of argibusiness equipment, has signed a definitive merger agreement with holding company Berkshire Hathaway.
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Under the terms of the deal, CTB shareholders will receive US$12.75 per share in cash and CTB will become a wholly owned subsidiary of Berkshire. This means the total value of the transaction, including about US$40m of assumed debt, was about US$180m.
Victor A. Mancinelli, CTB’s president and CEO, said the deal is a significant step forward: “[It] enables us to find an outstanding permanent home for this business. It’s good for our customers, our loyal employees and managers, and the local communities in which we operate, as well as providing an assured return on our shareholders’ investments.
“As a small-capitalisation, public company with limited research coverage, we were not widely followed by public market investors. Berkshire Hathaway, one of only eight AAA rated companies, will provide us improved access to capital to support our longer term growth strategy.”
Warren Buffett, CEO of Berkshire Hathaway, added: “This is a strong company with great American values. It has an excellent franchise, strong market share in a basic industry and top-flight management.”
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By GlobalDataThe merger agreement is subject to approval of a majority of CTB’s shareholders and to regulatory approvals. It is expected to close in the Q4 of this year.
