ITT To Purchase OI Corporation For $12 Per Share

ITT Corporation ITT has agreed to buy all the outstanding shares of OI Corporation OICO for about $29 million. ITT will buy all outstanding shares of OICO for $12 per share, representing a 43% premium to the OICO’s closing stock price yesterday. OICO will become a subsidiary of ITT, which will be doing business as OI Analytical. OI is also allowed to pay a onetime special dividend of about $0.50 per share to its shareholders, before the closing of the acquisition, after meeting specified financial conditions. The Board of Directors of OICO has approved the deal, which is subject to approval by the shareholders of OICO and other closing conditions. The deal is likely to close in late 2010. Gretchen McClain, ITT senior vice president and president of its Fluid and Motion Control group said, “We see very compelling growth characteristics in the analytical instrumentation market, and the addition of OI is right in line with our strategy to acquire attractive companies whose businesses are a nice complement to our existing portfolio.” “We believe this transaction represents an outstanding opportunity for our shareholders, customers, and employees. As part of the ITT family, we will have access to substantially greater resources to develop, market, and distribute our innovative products” said J. Bruce Lancaster, OI's CEO and CFO. OICO’s shares jumped 46.43% to $12.30, while ITT’s shares lost 0.43% to $46.10 at 10:14 am. Read more from Benzinga's Company news.