Teledyne Technologies to Acquire Benthos, Inc.
02 November 2005 - 2:30PM
Business Wire
Teledyne Technologies Incorporated (NYSE: TDY) and Benthos, Inc.
(Nasdaq: BTHS) jointly announced today that they have signed a
definitive agreement that provides for the merger of Benthos, Inc.
with a wholly-owned subsidiary of Teledyne Technologies
Incorporated. Upon the consummation of the transaction, which is
subject to approval by Benthos' shareholders as well as other
customary closing conditions, Teledyne will acquire all of the
outstanding shares of Benthos for $17.50 per share in cash. The
purchase price of $17.50 per common share represents a 39 percent
premium over the closing price on November 1, 2005. The aggregate
consideration for the outstanding Benthos shares will be
approximately $41 million (including payments for the settlement of
outstanding stock options) or approximately $31 million taking into
account Benthos' cash at June 30, 2005. As previously announced,
Benthos expects to report record revenue of approximately $24
million for its fiscal year ended September 30, 2005. Teledyne
expects the acquisition of Benthos to be neutral to earnings.
Benthos is a leading provider of oceanographic products designed
for port and harbor security services, the U.S. Navy, energy
exploration and oceanographic research. Benthos also manufactures a
growing line of instruments for automated quality control of
containers used in the food, beverage and pharmaceutical markets.
"The acquisition of Benthos will continue the expansion of
Teledyne's product lines of underwater acoustic instruments, which
include hydrophone streamer cables used in offshore oil exploration
and the acoustic Doppler instruments that were added with the
acquisition of RD Instruments in August 2005," said Robert
Mehrabian, Chairman, President and Chief Executive Officer of
Teledyne. "Benthos has developed a broad range of innovative
products, including acoustic modems for networked underwater
communication and a novel three-dimensional sidescan sonar system,
which are complementary to Teledyne's oceanographic, naval and
geophysical exploration instruments. Teledyne RD Instruments has
already integrated Benthos' acoustic telemetry technology in
Teledyne's Acoustic Doppler Current Profilers that are used for
wave monitoring, and Benthos has manufactured hydrophones for
Teledyne Geophysical's streamer cables for offshore oil and gas
exploration. "Benthos has applied acoustic and other sensor
technologies to quality control instrumentation used in the food,
beverage and pharmaceutical markets, which are also important
markets to Teledyne. Benthos' TapTone(R) instruments, which perform
real-time testing of leaks, pressure and vacuum in metal, glass and
sealed plastic containers, are employed by the same customer base
as Teledyne Analytical Instruments' products that continuously
monitor the purity of carbon dioxide used in food and beverage
production." Stephen D. Fantone, Chairman of the Board of Directors
of Benthos, and Ronald L. Marsiglio, President and Chief Executive
Officer, commented in a joint statement; "The combination with
Teledyne will add capabilities and critical mass to both our
oceanographic and process control instrumentation businesses.
Collectively, Benthos, Teledyne RD Instruments and Teledyne
Geophysical Instruments will represent a significant marine
instrumentation business, serving both commercial and government
customers, with locations in North Falmouth, Mass.; San Diego,
Calif. and Houston, Texas. Furthermore, our TapTone(R) division
will add new products to Teledyne's existing process
instrumentation portfolio." Ferris, Baker Watts, Incorporated
provided a fairness opinion to Benthos' Board of Directors.
Teledyne Technologies is a leading provider of sophisticated
electronic components, instruments and communication products,
systems engineering solutions, aerospace engines and components and
on-site gas and power generation systems. Teledyne Technologies has
operations in the United States, the United Kingdom, Mexico and
Canada. For more information, visit Teledyne Technologies' website
at www.teledyne.com. Benthos, Inc. manufactures oceanographic
products and package inspection systems through its two divisions.
The Undersea Systems Division has developed a number of products
based on its established acoustic technology for energy markets,
governmental entities, the port and harbor security segment of the
homeland defense market, and other commercial markets. The Package
Inspection Systems Division, also referred to as the TapTone(R)
Division, has developed quality control equipment for flexible
plastic, glass and other packaging used in the beverage, food and
pharmaceutical markets. Forward-Looking Statements Cautionary
Notice This press release contains forward-looking statements, as
defined in the Private Securities Litigation Reform Act of 1995,
with respect to management's beliefs about the financial condition,
results of operations and businesses of Teledyne and Benthos in the
future. These statements involve risks and uncertainties. Actual
results could differ materially from these forward-looking
statements. Many factors, including Teledyne's ability to integrate
the acquisition and achieve anticipated synergies, the ability of
Benthos' management to market existing and new products in its
Undersea Systems and Package Inspection Systems divisions, failure
of the requisite number of Benthos' shareholders to approve the
acquisition, and unexpected acquisition-related costs and expenses,
could change anticipated results. Certain of these and other
factors that could affect Benthos' business are discussed in
Benthos' Annual Report on Form 10-K for the fiscal year ended
September 30, 2004 and Prospectus dated May 24, 2005, on file with
the Securities and Exchange Commission ("SEC"). Neither Teledyne
nor Benthos undertake any obligation to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise. Additional Information
About the Acquisition This press release is for informational
purposes only. It does not constitute an offer to purchase shares
of Benthos, Inc. or a solicitation or recommendation statement
under the rules and regulations of the SEC. Benthos will publicly
file a Form 8-K with the SEC containing the terms of the definitive
merger agreement and shareholders agreements, and will mail a proxy
statement to shareholders of Benthos in connection with the
proposed transaction. Investors and security holders of Benthos are
urged to read the proxy statement and other relevant materials when
they become available because they will contain important
information about Teledyne, Benthos and the proposed transaction.
Investors and security holders may obtain a free copy of these
materials (when they are available) and other documents filed with
the Securities and Exchange Commission at the SEC's web site at
www.sec.gov. A free copy of the proxy statement, when it becomes
available, may also be obtained from Benthos, Inc., 49 Edgerton
Drive, North Falmouth, MA 02556, Attn: Investor Relations. In
addition, investors and security holders may access copies of the
documents filed with the SEC by Benthos on Benthos' web site at
www.benthos.com. Benthos and its executive officers and directors
may be deemed to be participants in the solicitation of proxies
from its shareholders with respect to the proposed transaction.
Information regarding the interests of these officers and directors
in the proposed transaction will be included in the proxy
statement.
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