Farmington-based elevator maker Otis Worldwide Corp. announced it has made an offer to fully acquire Madrid-based Zardoya Otis — which it currently has a partial stake in — and take the company private.
Otis Worldwide made an offer to buy the remaining 49.99% of Zardoya — an elevator original equipment and service business with operations in Spain, Portugal and Morocco, the company said. The Farmington manufacturer is offering 7 Euros or $8.22 per share.
Otis CEO Judy Marks said Zardoya is critical to the company’s long-term growth strategy, and taking it private makes sense for Otis’ global operations.
“While we have deep respect for Zardoya Otis’ heritage, delisting the Company will simplify Otis’ corporate structure, provide for more streamlined management of the business, and generate operational efficiencies for both businesses,” Marks said.
The acquisition is an all-cash offer, and would delist Zardoya Otis from the Madrid, Barcelona, Bilbao and Valencia Stock exchanges, Otis said. The company expects the transaction will close in the second quarter of 2022, subject to its approval by the Spanish Securities Exchange Commission.
