MSA completes acquisition of Latchways

Global safety equipment manufacturer MSA Safety
Incorporated has completed the
acquisition of Latchways, the UK based provider of fall protection systems and solutions.

Latchways employs
approximately 250 people globally and had 2015 revenues of approximately
$50 million. The transaction, which MSA announced in early September,
is valued at approximately $190 million and is being funded with
existing cash balances held outside the US and incremental borrowing
with an after-tax cost of less than 2%.

With the acquisition
complete, MSA immediately and significantly broadens its existing line
of fall protection products, strengthening the company’s position in the
global fall protection market, which is estimated to be between $1.5
and $2.0 billion globally. Latchways’ fall protection
systems include both horizontal lifelines and vertical fall arrest
systems and are used in the utilities, telecom, construction and
aircraft market segments.

“Our acquisition of Latchways effectively
doubles our fall protection business and it advances our core product
focus – which is a key element of corporate strategy,” said William Lambert, MSA chairman, president and CEO. “Equally important,
it strengthens MSA’s position in what is widely considered to be one of
the fastest growing segments of the global safety market.”

Lambert added that the
acquisition accelerates a key element of MSA’s long term corporate
strategy to provide a broad line of fall protection product offerings,
particularly within the area of engineered systems.

“We’re
very excited about finalising this transaction and bringing our two
great companies together,” Lambert continued. “There are many synergies
that make this acquisition an excellent fit for both organisations,
including an industry leading product line, a highly complementary
geographic footprint, and a mutually intense focus on driving customer
satisfaction and loyalty. Most importantly, our companies have very
similar cultures built on integrity and defined by a passion for
innovation and a commitment to one mission: protecting and saving
lives.”

The
acquisition was effected in the UK by a court sanctioned scheme of
arrangement between Latchways and its shareholders under English law. In
accordance with English law, two special meetings of the Latchways
shareholders were convened to approve the scheme of arrangement. Those
meetings resulted in favourable votes, with shareholders approving the
transaction by margins in excess of 99% of all shares present and voting
at those meetings.