VIENNA, June 25 (Reuters) - Andritz has agreed to buy U.S. machine industry company and supplier Xerium Technologies in a cash deal worth roughly $833 million, the Austrian engineering group said on Monday.
The move will enable Andritz, which makes machines and production lines for industries ranging from textiles and hydropower to steel and recycling, to strengthen its position in the paper industry, which Xerium supplies with parts and services.
“Andritz will acquire Xerium for $13.50 per share in cash, in a transaction valued at approximately $833 million, including net financial liabilities of approximately $590 million,” the Austrian company said.
The purchase price per share is more than double the $6.61 at which Xerium’s stock closed on Friday.
Xerium’s board of directors has approved the deal unanimously, Andritz said, adding that it would have to be approved by Xerium’s shareholders.
“Shareholders representing approximately 20 percent of Xerium’s outstanding common stock have entered into an agreement to vote in favour of the merger,” it added. (Reporting by Francois Murphy; editing by Jason Neely)