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Reuters
UPDATE - Briggs & Stratton to buy Simplicity for $227.5 mln
Wednesday June 2, 10:21 am ET
CHICAGO, June 2 (Reuters) - Briggs & Stratton Corp. (NYSE:BGG - News) said on Wednesday it agreed to acquire Simplicity Manufacturing Inc., the lawn care equipment maker, for $227.5 million in cash to expand its reach in the outdoor power equipment market.
Shares of Briggs & Stratton, a maker of small engines, rose 5.7 percent, or $4.34 to $80.09, a new all-time high on the New York Stock Exchange.
Milwaukee-based Briggs & Stratton, which also makes power generators, pressure washers and outboard motors, said it expects the acquisition to boost diluted earnings by 35 cents to 45 cents per share in fiscal 2005.
Privately held Simplicity, of Port Washington, Wisconsin, makes lawn tractors, snowthrowers and other yard equipment under the Simplicity, Snapper, Ferris and Giant-Vac brands.
The company, which distributes its products through a network of independent dealers, had net sales of $285 million for the 10 months ended April 30 and expects net sales of about $350 million for the 12 months ending June 30.
Briggs & Stratton expects the deal to close at the beginning of its fiscal 2005 first quarter.
Link:http://biz.yahoo.com/rc/040602/manufacturing_simplicity_3.html
UPDATE - Briggs & Stratton to buy Simplicity for $227.5 mln
Wednesday June 2, 10:21 am ET
CHICAGO, June 2 (Reuters) - Briggs & Stratton Corp. (NYSE:BGG - News) said on Wednesday it agreed to acquire Simplicity Manufacturing Inc., the lawn care equipment maker, for $227.5 million in cash to expand its reach in the outdoor power equipment market.
Shares of Briggs & Stratton, a maker of small engines, rose 5.7 percent, or $4.34 to $80.09, a new all-time high on the New York Stock Exchange.
Milwaukee-based Briggs & Stratton, which also makes power generators, pressure washers and outboard motors, said it expects the acquisition to boost diluted earnings by 35 cents to 45 cents per share in fiscal 2005.
Privately held Simplicity, of Port Washington, Wisconsin, makes lawn tractors, snowthrowers and other yard equipment under the Simplicity, Snapper, Ferris and Giant-Vac brands.
The company, which distributes its products through a network of independent dealers, had net sales of $285 million for the 10 months ended April 30 and expects net sales of about $350 million for the 12 months ending June 30.
Briggs & Stratton expects the deal to close at the beginning of its fiscal 2005 first quarter.
Link:http://biz.yahoo.com/rc/040602/manufacturing_simplicity_3.html