Hanson Trust Plans to Make Offer for SCM : British Company’s Bid Valued at $720 Million
Hanson Trust PLC, a British company with interests ranging from hot dogs to lighting fixtures, said Wednesday that it intends to launch a cash offer of about $720 million to acquire SCM Corp., another diversified business.
Sir Gordon White, chairman of Hanson Trust’s North American interests, said that Hanson Trust, either directly or through one or more of its affiliates, intends to commence a tender offer for any and all of SCM’s 12 million shares of outstanding common stock at $60 cash per share.
White said the tender offer will not be conditioned on a minimum number of shares being tendered.
Range of Products
SCM is based in New York and manufactures products that include Smith-Corona typewriters, Glidden paints and Durkee foods and spices. SCM also has interests in paper products and chemicals.
In trading on the New York Stock Exchange, SCM’s common stock shot up $8 a share to close at $63 in composite trading.
Two calls to SCM’s public affairs office were not returned. A secretary said a company spokesman was at a meeting and unavailable for comment.
Chris Guntner, manager of acquisitions for Hanson Industries, the U.S. subsidiary of the London-based company, said Hanson believes it has adequate resources to finance the takeover with its own funds.
Last month, Transworld Corp. agreed to buy a food-service management concern, Interstate United, from Hanson Trust for $92.5 million. In June, Hanson Trust announced plans to raise $630 million through a stock offering to pay off debt and finance possible acquisitions.
U.S. Holdings
In the United States, Hanson Trust owns Endicott Johnson Corp., a shoe company; Hygrade Food Products Corp., a maker of hot dogs and meat products; Ames Co., a producer of garden tools, and U.S. Industries, a lighting fixtures business.
Hanson Trust has annual sales of more than $1.5 billion in the United States. SCM earned $41.8 million on revenue of $2.18 billion in the fiscal year ended June 30.
White said that the company will file the offer with the Securities and Exchange Commission as soon as it can and that Rothschild Inc. will act as dealer-manager in the offer.
