Quipp Agrees to Acquisition by Illinois Tool Works
Miami-based Quipp Inc., parent of newspaper post-press systems supplier Quipp Systems Inc., announced today that it signed an agreement by which it will be acquired by Illinois Tool Works Inc., a diversified manufacturer of engineered components and industrial systems and consumables, headquartered in Glenview, Ill., with more than 825 business units in 52 countries.
Quipp's products are widely installed in the Americas. In 1995, Quipp bought Walpole, Mass.-based inserter remanufacturer and controls supplier Newstec for $4.2 million. Newstec became a Quipp subsidiary and consolidated operations in Miami.
The deal specifies a per-share cash price between $4.30 and $5.65, with the definitive price to be based on adjustments relating to the amount of Quipp's cash and cash equivalents and specified indebtedness before the transaction is completed.
Based on the 1.5 million Quipp shares outstanding at the end of September, the acquisition will cost in the range of $6.5 million to $8.5 million._
Quipp will not proceed with the transaction if the adjusted price would be less than $4.30 per share, which Quipp believes is unlikely. …