CUNO Inc. (Nasdaq: CUNO) and WTC Industries (OTC: WTCO) announced today they have entered into a merger agreement under which CUNO will acquire WTC for about $110 million in cash and assumed debt to expand its water filtration business. WTC shareholders will receive $39.87 in cash for each of their shares, while WTC option and warrant holders will receive cash based on the difference between $39.87 per share and the exercise price of their options and warrants.The terms value WTC at a 27 percent premium over its shares' Tuesday closing price.
Meriden, Connecticut-based CUNO makes filtration products for liquids and gases. Its products are used in the fluid processing, health care and potable water markets.
WTC, which is based in Eagan, Minnesota, through its PentaPure Inc. operating unit makes water filtration systems and replacement filter cartridges.
CUNO plans to use cash and bank financing to finance the purchase, and will assume about $9.5 million of WTC bank debt. The transaction is expected to close by the end of July.
WTC employs about 220 people and had sales of $28.3 million in 2003. The planned combination will increase CUNO's presence in the point-of-use water filtration products business.
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