Fushi International rises on buyout news
Fushi International, Inc. (Nasdaq: FSIN) will buy U.S. rival Copperweld Bimetallics, LLC for $22.5 million in cash, the Chinese maker of bimetallic wire reported after the close on Tuesday.
The all-cash transaction, which includes the assumption of debt, is scheduled to close at the beginning of the fourth-quarter of 2007. The exact purchase price could change based on Fayetteville, Tenn.-based Copperweld’s net working capital when the deal is inked.
“We look forward to quickly completing this transaction and welcoming Copperweld to Fushi’s expanding business,” said Li Fu, Fushi’s chairman and CEO, in a press release. “This transaction makes Fushi a truly global operation and establishes our business as the leading supplier of bimetallic products worldwide.”
Copperweld has a strong presence in the North American and European markets, through a production facility in Tennessee and another in England. The company’s executive management team will join Fushi when the acquisition is complete.
Strong and conductive, bimetallic wires are typically used in cable television, telecommunications, utility, electronics, and other industrial and transit applications.
At 3:48 p.m. ET, Fushi (FSIN) shares were up $1.81, or 16%, to $13.21. That’s close to the 52-week high of $14.00, touched on June 20.
