General Electric Co. will buy Osmonics Inc., a maker of water filtration systems, for about $253 million in stock and cash to expand the product offerings and technological reach at its GE Water unit.
"The fit between GE Water and Osmonics will allow us to better serve the water needs of our global customers," said John Rice, president and CEO of GE Power Systems.
Based in Minnetonka, Minn., Osmonics is a manufacturer and worldwide marketer of high technology water purification and fluid filtration, separation and handling equipment.
In the merger, Osmonics shareholders will receive the equivalent of $17 of GE common stock for each share of Osmonics. Shareholders may elect to receive $17 in cash per share instead of GE shares, subject to proration so that the total cash paid does not exceed 55 percent of the total merger consideration.
The merger, which is subject to the approval of the holders of a majority of Osmonics' outstanding common shares, government approvals and other customary conditions, is expected to close in the first quarter of 2003. Following the completion of the acquisition, Osmonics will be integrated with GE Water, a unit of GE Power Systems.
Osmonics, with worldwide employment exceeding 1,200, reported sales of $207 million in 2001. The company manufactures high-technology water purification and fluid filtration, fluid separation, and fluid handling equipment.