Umeco agrees acquistion deal, shares leap

Specialist engineering firm Umeco has received an offer from Cytec Industries' subsidiary Cytec UK Holdings, for the entire company.

Cytec and Umeco have agreed that the latter's shareholders will be paid 550p in cash per share, which values the entire company at around £274m.

The price represents a premium of around 46.3% to the closing price on April 11th.

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The company said that if the acquisition goes ahead, no final dividend will be paid.

Neil Johnson, Non-Executive Chairman of Umeco, said: "The board of Umeco believes that the offer from Cytec of 550p per Umeco share is an attractive price for Umeco shareholders, and represents a valuation that reflects the future growth potential of Umeco whilst providing certainty, in cash, to Umeco Shareholders."

The share price soared 47.21% to 553.50p.

NR