Posted on 18.11.2005 - 02:46 EST in GENERAL NEWS by ginamc
The purchase price of $17.50 per common share represents a 39 percent premium over the closing price on November 1, 2005. The aggregate consideration for the outstanding Benthos shares will be approximately $41 million (including payments for the settlement of outstanding stock options) or approximately $31 million taking into account Benthos' cash at June 30, 2005. As previously announced, Benthos expects to report record revenue of approximately $24 million for its fiscal year ended September 30, 2005. Teledyne expects the acquisition of Benthos to be neutral to earnings.
Benthos is a leading provider of oceanographic products designed for port and harbor security services, the U.S. Navy, energy exploration and oceanographic research. Benthos also manufactures a growing line of instruments for automated quality control of containers used in the food, beverage and pharmaceutical markets.
"The acquisition of Benthos will continue the expansion of Teledyne's product lines of underwater acoustic instruments, which include hydrophone streamer cables used in offshore oil exploration and the acoustic Doppler instruments that were added with the acquisition of RD Instruments in August 2005," said Robert Mehrabian, Chairman, President and Chief Executive Officer of Teledyne. "Benthos has developed a broad range of innovative products, including acoustic modems for networked underwater communication and a novel three-dimensional sidescan sonar system, which are complementary to Teledyne's oceanographic, naval and geophysical exploration instruments. Teledyne RD Instruments has already integrated Benthos' acoustic telemetry technology in Teledyne's Acoustic Doppler Current Profilers that are used for wave monitoring, and Benthos has manufactured hydrophones for Teledyne Geophysical's streamer cables for offshore oil and gas exploration.
"Benthos has applied acoustic and other sensor technologies to quality control instrumentation used in the food, beverage and pharmaceutical markets, which are also important markets to Teledyne. Benthos' TapTone® instruments, which perform real-time testing of leaks, pressure and vacuum in metal, glass and sealed plastic containers, are employed by the same customer base as Teledyne Analytical Instruments' products that continuously monitor the purity of carbon dioxide used in food and beverage production."
Stephen D. Fantone, Chairman of the Board of Directors of Benthos, and Ronald L. Marsiglio, President and Chief Executive Officer, commented in a joint statement; "The combination with Teledyne will add capabilities and critical mass to both our oceanographic and process control instrumentation businesses. Collectively, Benthos, Teledyne RD Instruments and Teledyne Geophysical Instruments will represent a significant marine instrumentation business, serving both commercial and government customers, with locations in North Falmouth, Mass.; San Diego, Calif. and Houston, Texas. Furthermore, our TapTone® division will add new products to Teledyne's existing process instrumentation portfolio."
Ferris, Baker Watts, Incorporated provided a fairness opinion to Benthos' Board of Directors.
Teledyne Technologies is a leading provider of sophisticated electronic components, instruments and communication products, systems engineering solutions, aerospace engines and components and on-site gas and power generation systems. Teledyne Technologies has operations in the United States, the United Kingdom, Mexico and Canada. For more information, visit Teledyne Technologies' website at www.teledyne.com.
Benthos, Inc. manufactures oceanographic products and package inspection systems through its two divisions. The Undersea Systems Division has developed a number of products based on its established acoustic technology for energy markets, governmental entities, the port and harbor security segment of the homeland defense market, and other commercial markets. The Package Inspection Systems Division, also referred to as the TapTone® Division, has developed quality control equipment for flexible plastic, glass and other packaging used in the beverage, food and pharmaceutical markets.
Source: Benthos Inc