Georg Fischer offers to buy Uponor for 2.1 billion euros

SWISS industrial company Georg Fischer has made the strongest bid so far for Uponor Oyj by offering 28.85 euros (S$41.7) per share to acquire the Finnish plumbing-equipment manufacturer.

Schaffhausen, Switzerland-based Georg Fischer said the board of directors of Uponor recommends that the shareholders accept the offer, which represents a 12 per cent premium over a rejected offer by Belgium’s Aliaxis. The total equity value of the offer is about 2.1 billion euros.

In May, Bloomberg News reported the Swiss company was exploring a potential offer for the Finnish manufacturer. That followed an improved 1.9 billion euro cash offer from Aliaxis, which had been rejected as being too low. The Belgian firm made a first approach in May 2022 and eventually went public with its interest after negotiations failed to lead to an agreement. 

“The two companies have complementary products and geographical footprints, similar cultures and a common ESG commitment,” said Yves Serra, chair of Georg Fischer’s board of directors.

Georg Fischer has secured the financing of the offer through a combination of existing cash and committed bank facilities. In addition, the company said it plans an issuance of 8 million Georg Fischer shares. UBS Group is advising the Swiss company in connection with the offer.

Uponor shareholders accounting for 36.9 per cent of the company support the offer, which is conditional on Georg Fischer having gained control of more than 50 per cent of the shares. BLOOMBERG