Radstone, a UK public company listed on the London Stock Exchange, consists of two businesses: Embedded Computing and Electronic Manufacturing Services (EMS). Radstone provides high-performance ruggedised computer products, subsystems and support software to defence systems integrators globally. The Company is headquartered in Towcester, UK, with operations in the UK, USA and Canada.
On 30 August 2006, Eurotech launched a hostile cash bid for Radstone at 360 pence per share. Eurotech had previously made two unsolicited approaches to the Radstone board during August expressing an interest in making an offer for Radstone at no less than 350p per share. Following advice from Close Brothers, the Board rejected the offers as undervaluing the business.
Upon receipt of the hostile offer, Close Brothers worked with the Board of Radstone to explore all options to maximise value for shareholders. Following this exercise, GE Fanuc Embedded Systems Inc. made a recommended cash offer on 18 September 2006, at 410 pence per share, valuing the issued and to be issued share capital at £149m, a premium of 13.9% to the offer of Eurotech and a premium of 51.9% to the closing price per share on the last business day prior to the commencement of the offer period.
Commenting on the transaction and the role of Close Brothers, Jeff Perrin, Chief Executive of Radstone said:
"Close Brothers advised the Board of Radstone for a number of years in its development of the Group, including on the important acquisition of ICS. Following the hostile bid from Eurotech, Close Brothers worked very closely with the Board to ensure that shareholder value was maximised. Close Brothers' advice played an important part in generating greater value for Radstone's shareholders through securing a higher offer from GE Fanuc."