Raymarine sold to FLIR Systems inc

A statement late on Friday issued by Raymarine reads: Raymarine plc (the “Company”), a global leader in the supply of electronic products to the leisure marine market, has today reached agreement to sell its shares in Raymarine Holdings Limited to a subsidiary of FLIR Systems, Inc. (“FLIR”) a world leader in thermal imaging products.

The sale represents the entire business operations of Raymarine and its subsidiaries. On 29 April 2010, following an extensive M&A (mergers and acquisition) process, the Company’s directors announced to shareholders that they were in advanced discussions with a third party regarding the sale of Raymarine Holdings Limited.

It was envisaged that this transaction, once completed and following repayment of the group’s bank borrowings and other creditors, would result in approximately 17.5 pence per share for the Company’s shareholders. The Board of Raymarine was unable to complete a solvent sale of the company and it was placed into Administration earlier today. Chad Griffin and Simon Granger of FTI Consulting were appointed as Joint Administrators. No other subsidiary in the Raymarine group was placed into Administration. Shortly following the Administration, the successful sale to FLIR was transacted.

Based on current information this transaction would equate to a return to shareholders of approximately 20 pence per share before costs and any creditor claims. However, the Administrators will not be able to confirm the precise amount until they have advertised for creditor claims.

The sale of the business follows a thorough M&A process by the Company and a series of discussions with various interested parties. The Administrators concluded that the sale to FLIR provided the best available outcome for employees, shareholders and creditors. The transaction ensures business as usual for all customers and suppliers of the Raymarine Group.

Earl Lewis, Chairman, Chief Executive Officer and President of FLIR Systems, Inc. commented: “We are pleased to announce this strategically compelling transaction. Raymarine is a leading brand in the industry and has an outstanding reputation for high quality marine electronics equipment. When fully integrated, we expect to have a significant marine electronics business as part of our Commercial Systems business. I welcome Raymarine’s employees to FLIR.”

Application has been made for the listing of, and trading in, the shares of Raymarine Plc on the London Stock Exchange to be cancelled and shareholders will be contacted in due course in relation to their position.

Further information for shareholders relating to the Administration will shortly be made available on www.raymarine.com.

Raymarine administration fears

The un-named company who are interested in buying marine electronics specialist Raymarine have said that they will only proceed with their proposed buy out if Raymarine goes into administration.

Raymarine announced that the un-named company 'would be willing to enter into a transaction with the administrator to acquire Raymarine Holdings Limited for a consideration that is likely to equate to approximately 17.5 pence per share (before administration costs) in providing for the repayment of the Raymarine group's banking facilities'

The Raymarine board are currently believed to be in talks with it's banks to try to resolve the situation, with any deal needing to be finalised today.

Raymarine reject Garmins offer

Well after yesterdays reports that Garmin had tabled an offer to the Raymarine shareholders for the purchase of their rivals, news has just been announced that the Raymarine board has urged it's shareholders to take no action with regards to this offer.

The Raymarine board have however announced that they are in advanced talks with a third party over the sale of Raymarine Holdings LTD who are offering a price of 17.5p per share (the Garmin offer was 15p per share).

we will keep you posted on any further news

Garmin bid for Raymarine

After months of speculation marine electronics specialist Garmin have made a formal offer to acquire competitor Raymarine for a price of 15 pence per share. If approved the deal would see Garmin pay Raymarine shareholders an estimated £12.5 million, Garmin would also have to taken the significant debt that Raymarine currently owe, last published at a net figure of £91.6 million.

Raymarine have seen a sharp drop in share price from there peak in April 2007 at 490p per share this has been blamed on the whole on the decline in demand for hi-end electronics since the economic down turn.

There seems to be mixed opinions to whether the merger will be allowed to go through due to competition laws, but Garmin believe when combined the 2 company's will still below 30% of the market share which is below the level where concerns normally arise.

We will keep you posted with any further updates.