Otis To Buyout Interest In Zardoya Otis

Otis Worldwide Corp OTIS announced a tender off for all of the shares it does not currently own in Zardoya Otis, S.A. for an offer price of €7.00 in cash.
The offer price represents a premium of 28.9% to Zardoya's 1-month volume-weighted average price.
The deal implies a total equity value, including Otis' existing interest, of €3.3 billion.
Madrid, Spain-based Zardoya Otis is a premier elevator original equipment and service business.
Zardoya Otis generated revenue of €801 million and EBITDA of €223 million for the 12 months ending May 31, 2021.
The parties expect the deal to close in 2Q22. Zardoya Otis will delist from the Madrid, Barcelona, Bilbao, and Valencia Stock exchanges.
Otis expects the deal to be up to mid-single-digit percentage accretive to its adjusted EPS starting 2023. It expects 2022 EPS accretion of 3 to 5 cents.
Otis Worldwide held cash and cash equivalents of $1.92 billion as of June 30, 2021.
Otis continues to target its current investment grade credit ratings and plans to repay $800 million of existing debt and suspend share repurchases in 2022.
Price Action: OTIS shares are trading higher by 2.57% at $86.46 on the last check Thursday.