United
Technologies Corp Agrees to Acquire Chubb plc in $1.0 Billion Deal
United
Technologies Corp. announced on 11th June a $1.0 billion offer to purchase
Chubb plc, a leading provider of electronic security and fire protection
products and services, in an all-cash deal that the boards of directors
of both companies have approved unanimously.
Chubb, based in London, employs approximately 48,000 people and reported
2002 revenue of £1.5 billion ($2.5 billion), with more than 1 million
customers worldwide and market-leading positions in the U.K., France,
Hong Kong, Canada, and Australia. The transaction will expand UTC's commercial
businesses, which include Otis elevators and escalators and Carrier heating,
ventilation and air conditioning (HVAC) systems and account for 57 percent
of UTC's 2002 revenues.
The offer price of 75 pence per share represents a premium of 13 percent
to Chubb's closing price of 66.25 pence per share on April 15th, the day
before Chubb disclosed the start of talks. UTC also will assume Chubb's
net debt, which was $934 million (£566 million unaudited) as of
April 30th, 2003, up from $779 million (£473 million ) as of December
31st, 2002. Chubb will pay a special interim dividend of 1 pence per share.
UTC said the transaction is expected to be accretive to earnings, and
the company reaffirmed its 2003 outlook for earnings per share in the
range of $4.55 to $4.80 and for cash flow from operations, before pension
contributions and after capital expenditures, approximately equal to net
income. UTC's debt to total capital ratio is expected to end the year
at approximately the same level as 2002.
'Chubb fits directly into UTC's business mix and acquisitions strategy,'
said George David, UTC's Chairman and Chief Executive Officer. 'The company
is a market leader in commercial security services and fire protection,
and these businesses have substantial markets. Chubb is further positioned
well internationally, and UTC's already high aftermarket and international
revenues will increase following the acquisition.
'Most of all,' David said, 'we like the overlaps in our customer populations.
UTC already sells to exceptionally high numbers of buildings in the world,
and Chubb's installations will both overlap with and augment this large
presence. We see lots of potential for synergies among Otis, Carrier and
Chubb. We like this deal a lot.'
Commenting on the offer, Sir Robert Horton, Chairman of Chubb, said, 'Chubb
has a fine portfolio of businesses, a strong brand name, and talented
and committed people. We believe that there is considerable long-term
potential in the Chubb Group and we have a clear strategy to deliver it.
However, this potential is likely to be realised more quickly within a
major global group like UTC with substantial resources. UTC's offer provides
shareholders with the certainty of cash now in uncertain and difficult
markets.'
UTC's offer is subject to customary conditions including acceptance of
the offer by Chubb shareholders owning at least 90 percent of the shares
outstanding, approvals by all relevant regulatory agencies, and compliance
with required filing and other regulations. The companies expect the transaction
to close in the third quarter.
UBS Investment Bank and JPMorgan acted as financial advisers to UTC, and
Linklaters acted as its legal adviser.
United Technologies Corp., based in Hartford, Conn., is a diversified
company that provides high-technology products and services to the building
systems and aerospace industries worldwide. In addition to Otis and Carrier,
UTC's companies include Pratt & Whitney, Hamilton Sundstrand, Sikorsky
and UTC Power.
GP&T Set to be Biggest Glass-Specific Show Ever Held in UK as Glaverbel, Schott Bystronic, Pearsons Join Exhibitors
Glass
giants Glaverbel and Schott, leading international machinery manufacturer
Bystronic, top processor and coloured glass supplier Pearsons and software
house Jotika are the latest companies to sign contracts to exhibit at
Glass Processing & Technology (GP&T), the brand new show for the
glass industry to be staged at the NEC from 11th to 13th November this
year. The signings are a major vote of faith for the event, which is already
destined to become the largest gathering of specialist glass exhibitors
ever staged in the UK.
Almost 60 companies have now committed their support for the exhibition
and conference, the first to be created specifically for the glass industry
and its customers for over 20 years. The event has become a Who's Who
of the glass industry, with names such as Bavelloni, Promac, Hegla, and
Tamglass already signing.
Glaverbel's Gordon McLachlan believes that GP&T is an exciting opportunity
for the glass industry: 'The time is right for such an event. The popularity
of glass as a building and design component has never been so high, and
there are some tremendous advances being made to add benefits and performance
to glass for all applications. GP&T offers an excellent forum through
which these advances may be discussed both with glass processors and specifiers,
and to develop the markets still further.'
Steve Powell of Bystronic is equally enthusiastic: 'It is very difficult
to communicate the properties and benefits of complex processing and handling
machinery through brochures, magazines or the Internet. An exhibition
offers visitors the opportunity to walk around the equipment, to try the
controls and to compare similar products on an equal basis. We are supporting
GP&T with a large stand as it is specifically targeting glass professionals
- it has come along at the right time for the industry.'
Pearsons Glass is taking part at GP&T to meet a wider range of glass
users such as shop fitters, coloured glass artists, designers and other
professional specifiers: Pearsons Glass is the largest supplier of coloured
glass in the UK, and our processing division can expertly offer all types
of processed glass in all manners of shapes, thickness and sizes for any
application, says Steve Dakin, the company's Sales and Marketing Manager.
We feel that the exhibition will enable us to communicate the special
qualities and huge range of products we offer.'
In addition to the exhibition a full conference programme will address
issues faced by the glass industry, and by architects, specifiers and
other professional users. The glass industry stream is being arranged
in association with the organisers of Glass Processing Days, the world's
biggest glass industry conference, to create GPD UK for the first time.
The specifier sessions will be organised by one of the UK's leading architectural
publishing groups. Further information on the conference is expected soon.
Glass Processing & Technology will be held in Hall 1 of the National
Exhibition Centre at Birmingham, on 11th, 12th and 13th November 2003.
Contact: Leah Tidy
Tel: 020 8277 5733
Email: mailto:leah.tidy@emap.com
Web: http://www.gptexhibition.com
KAT
Announces Future Investment Plans
With
turnover on track for £6.5m this year - 28 per cent up on last year
- Macclesfield based KAT UK has made known its ambitions for continued
organic growth towards a target of £10m turnover in three years
time.
Organic growth will be achieved by expanding KAT's product portfolio of
specialised niche window and door products either by taking on new manufacturing
facilities, or by acting as an agent for third parties. The company is
also looking to make strategic acquisitions to complement organic growth.
To
help director David Richards (pictured) achieve these goals, a new finance
director, Sean Moriarty, has been appointed. Sean has a strong background
in corporate finance, and as the company's previous external adviser has
already been instrumental in various KAT projects in the last 18 months.
'As an outsider coming into the industry it is clear that there is still
an abundance of opportunities for companies that are driven and ambitious,'
commented Sean. 'KAT clearly demonstrates all the qualities necessary
to take advantage of these opportunities and move into the next phase
of growth. It is highly professional, committed and, crucially, fast moving.
David Richards has developed an infrastructure that will ensure all activities
remain customer focused at all times. The next five years are going to
be very interesting indeed.'
David Richards added:
'As an industry we keep being warned about market saturation. I believe
that saturation will only occur if you are not prepared to grow and develop
in line with market demands - basic commercial common sense really. Here
at KAT we never stand still. It keeps us fresh and helps us respond to
changes and opportunities quickly and effectively, so that we are always
ahead of the game.'
KAT started off manufacturing patio doors at its first small unit in Stockport.
Within three years it had grown dramatically, moved into dedicated fabrication
sites in Macclesfield, and had taken on a number of complementary niche
products.
The company estimates that it now manufactures 15 per cent of the ready
made patio doors destined for the UK replacement market, and has recently
added a new range of French doors to its portfolio.
Email: mailto:sales@katuk.co.uk
Web: http://www.katuk.co.uk
It's
been a record year for PVCu fabricator and colour coating specialist,
Kolorplas. The Oxon-based group reports a 20% overall increase in sales
for the year, double the usual rate of growth for the company's trade
operation, with retail sales up by 15%.
Whilst
Kolorplas has seen a rise in sales across all product areas, colour coating
of conservatory roofs and the manufacture of coloured windows, doors and
conservatories have enjoyed a three-fold increase on previous years. Vertical
slider sales have also shown an increase, and there has been considerable
growth in orders for the new WHS Halo Esthetique 5-chamber fully sculptured
window in white, rosewood and cherry. 'The Esthetique profile greatly
exceeds the new requirements with a U-value of 1.63 when glazed with SGG
Planitherm Low-E,' explains David Wanless, Director of Kolorplas. 'Furthermore,
we have introduced a more aggressive approach to pricing and greatly reduced
delivery times. This, together with industry awareness amongst installers
of the James Harcourt branding package, has also resulted in increased
sales for Esthetique.'
To keep pace with growing demand, Kolorplas has made substantial investments
over the past year in personnel, machinery and transport. The addition
of a new 3-tonne Mercedes van for economic handling of smaller loads is
providing greater flexibility in the company's nationwide delivery and
collection service. In addition, extra staff have been recruited in the
factory, trade sales and in administration.
As Kolorplas embarks on a new financial year, the team is predicting growth
to continue at around 20%. 'Colour is heralded as a major growth area
in the PVCu industry and our financial results reflect this trend. Colour,
particularly in the booming conservatory market, presents exciting new
profit opportunities for fabricators and installers alike, and we're now
looking forward to another positive year for both ourselves and our customers.'
commented David.
Contact: Chas Hollis
Tel: 01235 516700
Masterdor
Offers DDA Compliance
Manse
Masterdor Ltd gave public specifiers the low-down on the Disability Discrimination
Act 1995 (DDA) at Windowfab last month and highlighted the urgent need
for service providers to take an in-depth look at how the new legislation
will affect them.
The company, which is a UK manufacturer of bespoke timber-bladed external
doors, offered guidance on a number of key issues relating to the legislation
at the 'Beyond The Threshold' seminar. This included shedding light on
the critical role that door selection has in helping social housing providers
enhance the accessibility of buildings.
There are now just under two years before Part III of the Disability Discrimination
Act 1995 comes fully into force. In general terms, the DDA is a piece
of civil rights legislation that promotes equality for disabled people.
In practice, the legislation will have a significant effect on the way
that the buiit environment is designed and managed, and will exert further
pressure onto specifiers to cite products that not only perform but also
serve to enhance the accessibility of buildings.
As service providers, local authorities and housing associations will
have to make reasonable adjustments to physical features that make their
services impossible or unreasonably difficult to use. By reviewing their
operations and anticipating these changes well in advance of the introduction
of the legislation, local authorities and housing associations reduce
the risk of discriminating against disabled people.
The principal entrance to a building can often be a barrier to access
for disabled people unless suitably designed. There are several factors
that need to be taken into consideration when designing the main entrance,
including the type of threshold needed to allow convenient wheelchair
manoeuvre and the minimum effective clear width through the doorway. The
Masterdor range of timber bladed door-sets is able to address all of these
issues because each door is made to measure.
The ideal partner for Masterdor door-sets is the Sheerline ramp system,
which is constructed from high impact PVC and features a slip-resistant
surface. The virtually maintenance free ramp system is designed to help
social housing providers comply with the access regulations found in the
DDA.
Masterdors exceeded the PAS 23/24 BSi tests with no amendments to the
product's specification. Manse Masterdor Ltd provides a wide range of
Secured by Design single leaf door-sets and offers a wide range of firedoors,
all of which meet the requirements of BS476 pt 22.
Web: http://www.masterdor.co.uk
Software
is Jewel in the Crown for Royal
A
Merseyside based commercial aluminium specialist has set its sights on
growth with an ambitious investment package from Promac. The new machinery
- from the high-end Emmegi range of aluminium fabrication equipment -
will be made more flexible, efficient and productive through the integration
of the latest software package - also from Emmegi - called Frame Project
Pro (pictured).
Established
in1984 by Malcolm Allanson, and operating from a 675m2 factory and office
suite located in central Birkenhead, Royal Extrusions can offer a complete
service from design to installation for architects, builders or building
managers needing entrance systems, glazing or panelling.
Now, all structures are designed first on the Emmegi FP PRO software,
which then sends the machining list to the CNC machine (the Emmegi Kelt)
and the sawing list to the saw (the Emmegi Twin Electra Sun). The pieces
are cut, and then have a barcode label attached which is read by the CNC
Kelt for the appropriate machining to be carried out.
The Emmegi Kelt CNC machining centre is a 3 axis machine for drilling,
milling and processing aluminium extrusions, as well as PVCu. The Twin
Electra double mitre saw can cut angles from 45deg (internal) to 22.5deg
(internal).
Prior to Frame Project Pro, there was different software for virtually
every production process in the factory.
'We have been looking for a while for something that would handle everything,
and was user-friendly', says Malcolm.
Frame Project Pro now pretty much runs the factory, ordering glass and
profile, controlling production and stock control.
'It has made my retirement that much nearer', Malcolm concludes.
Contact Royal on 0151 652 6044
Email: mailto:malcolm@royalextrusions.co.uk
Tel: 01788 577577
Email: mailto:saleswin@promac.co.uk
Web: http://www.promac.co.uk
Building
Airtightness - the Honeymoon Period is Nearly Over
BRE's airtightness experts are reminding designers and contractors that,
from 30th September 2003, all new commercial and public buildings with
a gross floor area of 1000 m2 or more must demonstrate that they meet
the new airtightness standard of 10 m3h-1m-2.
Part L2 of the Building Regulations came into force in April last year.
As a result, new buildings have to be tested for air permeability and
those with excessive air leakage are no longer acceptable. So far the
government has allowed a standard of 'reasonable compliance', however
designers and contractors must now start gearing up to meet the stricter
regulations.
Contact Mike Jaggs
Tel: 01923 664717
Email: mailto:airtightness@bre.co.uk
Web: http://www.bre.co.uk/airtightness
Neslo
joins the Linkspan Group - 'Life Begins at 40'
Already
a success story, borne out by celebration of it's 40th birthday this year,
Neslo is set to grow following its take over by Linkspan - the UK's largest
independent partitioning contractor.
Neslo started life in 1963 as a specialist joinery company and has since
flourished into a £20m pa business attributable to quality workmanship
and strong client relationships built up over the years. The company specialises
in the design, manufacture and installation of a full range of fixed and
relocatable partitioning systems. From steady beginnings in Bromborough,
Merseyside Neslo has expanded with two further offices in the Midlands
and Scotland staffed by a dedicated team of over 100.
Linkspan was attracted to the company because of its upmarket reputation,
strong product portfolio and its longevity in the market place -an uncommon
achievement in the partitioning business. Neslo was formerly part of the
Carillion Group so this latest move is described as a positive step by
John Sale, Neslo General Manager; 'Carillion is first and foremost a civil
engineering company with a massive tumover of around £3bn per annum.
Partnership with Linkspan, which is distinctly and uniquely involved with
partitioning, will bring huge benefits in terms of product development
and support and general management structure which will be geared towards
providing the best partitioning solutions to the market.'
Neslo's product range suits all budgets and project types with entry level
Flushwall systems, Trimwall relocatable partitioning, Fineline high quality
seamless partitioning and Clearline glazed systems. Top of the company's
product tree is Craftwall - a bespoke timber framed system utilising the
very best of Neslo's joinery craftsmanship.
Partnership with Linkspan is already yielding positive customer benefits
with a new company brochure and a re-designed website soon to be launched.
Radway
sets up 2000 Units Per Week Capacity
Redditch-based
Sheerframe windowmaker Radway Door and Windows Ltd has invested over £250,000
in new machinery at its main manufacturing plant, and established a new
production unit at nearby Aston, to meet demand for its Sheerframe windows
from the social housing sector.
The investment, part of an on-going programme which has also seen the
appointment of a number of new contracts managers, takes production capacity
to over 2000 windows per week on a one and a half shift system.
According to sales and marketing director, John Park-Davies, Radway expects
to fill that capacity within the next twelve months, given the current
demand for its partnering-orientated approach to window supply and fitting.
'The skill is not in making the windows, but in effectively managing contracts
for what is becoming an increasingly demanding sector,' he says. 'Rightly,
under partnering arrangements, clients in the social housing and public
sectors are requiring a much greater involvement on the part of their
window suppliers, and with that comes a demand for financial substance
and excellent project management skills. Whereas there may be those currently
in the retail sector who are looking to switch to selling to RSLs, the
reality is that the two marketplaces are markedly different.'
Radway has recently completed work on a number of major projects in the
south of England, including the fast-track supply and installation of
external doors and pivot windows on behalf of Reigate and Banstead Housing
Trust in Surrey.
Picture shows: John Park-Davies sales and marketing director of Radway
Door and Windows Ltd expects window production to significantly rise due
to a £250,000
investment in new equipment.
BWF
Best of Breed Testing Timber Windows to the Full
The
British Woodworking Federation's Showcase Project, being run in partnership
with the Building Research Establishment (BRE), is successfully pushing
the boundaries of timber window manufacturing and finishing techniques
across a wide spectrum.
The project is a three year initiative by the Federation's Timber Window
Accreditation Scheme. It started with 21 timber windows and now has 35
fully working, factory finished and factory glazed timber windows braving
the elements at BRE's testing ground at Garston, Watford, close to the
harsh conditions of the M1. The first report is due out at the end of
July 2003, one year after the project started.
'lt will add considerably to the data we have been building up in recent
years, said John Hedgecock, the BWF's Technical Manager. 'The ultimate
outcome of all the work we are doing is to extend further the warranties
Scheme Manufacturers already offer, so that long life, low maintenance
is no longer even an issue in people's minds.'
All BWF Timber Window Accreditation Scheme Members were invited to take
part, the majority of whom (including component suppliers) have done so.
A number of them have submitted samples using heat-treated, laminated
and finger-jointed timber, in addition to traditional softwoods.
Different timber profiles have also been included to enable as much as
possible to be learned about the affect of water run-off and 'stretching'
on paints and finishes. Paint manufacturers have also taken part, testing
entirely new coating systems on current window output.
The Showcase Project follows on from a 'pilot scheme', which tested standard
windows, taken straight off the production line, in the same location,
and included a plastic window to provide a competitive benchmark.
Some ten Timber Window Accreditation Members took part in the pilot. The
aim was to pool the results and learn from each other's experience to
develop the 'dos and don'ts' of timber window manufacture. It was primarily
a test of timber materials, finishes and glazing.
'Overall it Was a very useful exercise,' said John Hedgecock, 'but the
Best of Breed Showcase Project is going a good bit further and the industry
expects to learn much more from this. The results are likely to determine
what we can expect from timber windows in the future.'
Tel: 020 7608 5050
Email: mailto:windows@bwf.org.uk
Web: http://www.bwf.org.uk
23
Times Round the World with Profile 22
With
its unique number plate, J22 PVC, one of Profile 22's fleet of lorries,
has proved to be a reliable workhorse. The Scania lorry was first registered
in September 1997 and has notched up some impressive statistics.
Boasting 578,096 miles on the clock, the vehicle has travelled the equivalent
of more than 23 times around the Earth's circumference, or nearly two
and a half journeys to the moon. And it is still running with the original
engine!
During that time it has carried a total of approximately 11,229 tonnes
of profile, which would reach over 7,000 miles if laid end to end.
Just like J22 PVC, Profile 22 will continue working hard to offer customers
a reliable, long-lasting and friendly service.
Tel: 01952 290910
Shepley
Never Sleeps with new Auto-Fax service
Shepley
has launched a new auto-fax service to provide glass sizes and frame order
details overnight. When customers order their windows, doors or conservatories
from Shepley, their details are logged. With the new auto-fax they will
automatically be faxed with glass sizes and a confirmation of their frame
order details that night.
'This benefits our customers because they don't have to wait the 2 or
3 days it takes for the post to get to them,' comments Tim Walker, sales
director of Shepley. 'The system cuts time on paper administration and
headaches and customers can order glass instantly. We don't just use technology
for the sake of it. But only if it is practical and of benefit to our
customers.'
Tel: 0161 339 2433
Email: mailto:james.brisbane@shepley.com
Better
Homes Provides Better Publicity for West Yorks Windows
Status
fabricator West Yorkshire Windows has just completed its fourth conservatory
installation for the ITV home improvement show Better Homes, featuring
Carol Vorderman. The window company designed and built a double gable
ended conservatory that was, unusually, sprayed charcoal grey on the outside.
The Wakefield based window company is no stranger to the limelight, having
worked with both Better Homes and the BBC's DIY SOS several times in the
past. Director Andrew Glover cannot put a price on the publicity it provides
them.
'We get so much interest in our company and products from this type of
activity. Both pre and post publicity ensures that interest and curiosity
remains high - giving us excellent exposure on which to build more sales.'
The programme was shown on May 20th at 8.30pm on ITV.
Email: mailto:sales@status-systems.co.uk
Web: http://www.status-systems.co.uk
Carl
F Launches 'Paint to Order' Service for Vents
Carl
F Petersen Ltd has enhanced its capabilities with regard to Duco, Ventilation
& Sun Control products.
The company, which has been providing a made-to-measure facility for the
ventilators since 1999, is now stocking the product in mill finish, enabling
it to offer vents and louvre grilles in a vast range of colours (more
than 250 in the standard range).
Commenting, Carl F Petersen business development manager, Bruce Bradshaw
said:
'While in the past our core market has been the PVCu door and window manufacturer,
the range of Duco products is enabling us to penetrate the still substantial
market for aluminium fenestration, particularly in the commercial field.
We have developed a relationship with a leading powder coating company
which enables us to offer excellent service and top quality finish across
a very wide range colours.'
To support this new move, Carl F has invested in additional equipment
to improve its productivity across the full Duco range.
Duco have designed and engineered products to suit the particular requirements
of the UK market - notably the thermally improved Ducotop 60 overframe
ventilator, and the PVC Ducotop 35 overframe ventilator. The extensive
Ducogrille louvre programme now forms an important part of the range for
Carl F Petersen.
Tel: 01536 401155
Web: http://www.carlf.co.uk
Alcoa
Chooses Bechtel and HRV To Build Project in East Iceland
Alcoa
has chosen Bechtel and its partner, an Icelandic engineering consortium,
HRV (Hönnun, Rafhönnun, VST), to design and build its new plant
in East Iceland, which is being designed for production of 322,000-metric-ton-per-year
of primary aluminium.
'We are pleased to have a project team that combines the global breadth
of Bechtel and the best talent from Iceland, to leverage the more than
100 years of Alcoa expertise in primary metals,' said Mike Baltzell, President
of Alcoa Primary Metals Development. 'By leveraging Alcoa's leading technology
and expertise in metals, the team can design and create a world-class
facility that also meets the unique needs of the East Iceland community,'
he said.
Bechtel and the Icelandic group plan to maximise the use of Icelandic
firms and local workers on the project. Design work on the project will
begin in the second half of 2003, but work on the site is not expected
to start until the fourth quarter of 2005. The project is expected to
cost approximately $1 billion and will be completed in the second half
of 2007.
The construction and operation of the aluminium plant will help strengthen
the economy of East Iceland, which is now heavily dependent on the fishing
industry. The construction phase for the facility is expected to involve
approximately 2300 man-years, and, when fully operational, the plant will
employ approximately 450 people. Another 300 related jobs will be created
in related industry, service and commerce.
Bechtel and HRV, with support from K-Home Engineering, will work with
Alcoa to design an ultra-efficient plant that has minimal environmental
impact. The design will not incorporate an on-site disposal area for spent
pot lining, a by-product of the aluminium production process. Carbon anodes
will not be manufactured at the Iceland plant, eliminating a source of
sulfur dioxide (SO2), nitrogen oxide (NOX) and hydrocarbon (PAH) emissions.
The plant will be designed to achieve Alcoa's strict, self-imposed sustainable
development objectives, including zero process water discharge.
Bechtel will perform engineering, procurement, and project management
functions in Montreal, home of its global Aluminum Centre of Excellence.
Bechtel established the center in 2002 to strengthen its commitment to
Quebec, while recognising Montreal as a world centre for the aluminium
industry.
Bechtel Group, Inc. is one of the premier engineering, construction, and
project management companies, with 1,000 current projects in more than
60 countries and a workforce of 47,000. Bechtel has served the aluminium
industry for more than 30 years, installing nearly 3 million metric-tons-per-year
of aluminium smelter capacity.
Web: http://www.alcoa.com
Web: http://www.bechtel.com