TheStreet.com reported yesterday that Simrad Yachting agreed to buy Tulsa, Okla.'s Lowrance Electronics (symbol LEIX on Nasdaq) "for $37 a share, a roughly 48% premium to the stock's last closing price." That put Lowrance's value at about $215 million.
The acquisition is being characterized as a merger, and Darrell Lowrance, Lowrance founder, chairman and CEO, will be CEO of the new company. Jan Berner, the CEO of Simrad, will be deputy CEO.
Lowrance said: "I believe the merger with Simrad Yachting is in the best interests of our company and shareholders. The combination of Simrad Yachting and Lowrance will be able to leverage the technology and market position Lowrance has worked hard to develop over the last 48 years, and will create additional opportunities for our employees and customers in the future."
Lowrance has been a long-time sponsor of bass fishing, and currently sponsors BASS and FLW Outdoors and numerous fishermen.
Simrad Yachting is a leading provider of marine electronics to high-end leisure boats and smaller commercial vessels. It is owned by Altor 2003 Fund, a Nordic-based private equity fund advised by Altor Equity Partners AB, and Kongsberg Gruppen, a Norwegian based maritime electronics and defense company.
"We in Simrad Yachting have gotten to know Lowrance over some time, and are very impressed by the company, its management and what it has achieved," said Hugo Maurstad, Simrad's chairman. "We look forward to combining the strengths of two great companies."
