TROY, Ohio -- Hobart Corp. moved to avoid a takeover by Canadian Pacific Enterprises (U.S.) today and announced it has entered into a merger agreement with Dart & Kraft of Glenview, Ill.
with Hobart shareholders receiving a cash price of $40 a share, it was announced Tuesday.
Hobart president David B. Meeker and John M. Richman, chairman and chief executive officer of Dart & Kraft, announced agreement under which Hobart shareholders could receive $40 cash per share.
Richman said that funds for the $460 million tender offer and merger would be available from bank credits anticipated to total about $500 million, and from excess cash.
The offer came four days before a $32.50 a share offer was scheduled to commence from Canadian Pacific Enterprises (U.S.). Officials from CPE were not available for comment.
Under the terms of the merger agreement, which has been approved by the board of directors of each company, Dart & Kraft will tender for any and all Hobart common shares at $40 a share net to the seller in cash.
The tender offer was scheduled to begin Thursday and expire March 19.
All of the directors of Hobart intend to tender their Hobart common shares to Dart & Kraft, according to a statement by the company.
Dart & Kraft resulted from a merger of Kraft Cheese Co. and Dart which makes plastic containers and kitchenware.
For 1980, Dart & Kraft reported net income of $383.1 million on sales of $9.4 billion, based on preliminary figures.
Hobart, for the nine months ending Sept. 30, 1980, had net income of $21.1 million on sales of $482.3 million.
Hobart employs 4,000 people at plants in Troy, Dayton, Greenville, Hillsboro and Medina, producing commercial and home kitchen appliances.
