Scientific Technologies Inc., a leading North American provider of automation safeguarding products, has completed its previously announced merger with a subsidiary of Japan-based Omron Corp. ("Omron"). STI shareholders will receive $10.67 per share in cash as a result of the merger, and STI will cease to be a publicly traded company. Omron acquired STI's Safety Products Group (SPG) business and STI sold its Automation Products Group (APG) business to Automation Products Group Inc., a new company formed by members of the Lazzara family. The total transaction values the equity of the STI at approximately $110.8 million.
"We are pleased that our shareholders have approved this transaction and that the merger is now complete," said Joseph J. Lazzara, president and chief executive officer of STI. "We believe this transaction provides significant liquidity to our shareholders while providing exciting new platforms of opportunity for our customers and employees."
Explaining the new structure, Lazzara added, "The Company's Safety Products Group business is now part of a larger, global company and will operate under the name of Omron Scientific Technologies, Inc. We believe this transaction will create a global leader in the industrial safety market, with the resources of a world-class organization such as Omron and the North American automation safety expertise of STI."
Mr. Fumio Tateisi, executive vice president of Omron and president of Omron's Industrial Automation Business, said, "We are very pleased to have completed this transaction and look forward to being able to offer a wider range of cutting-edge safety products and consultancy services to our industrial-safety customers."
The operations of STI's Safety Products Group will remain in Fremont, Calif.
With regard to the Company's APG unit, Mr. Lazzara said, "The Company's APG business will continue to operate out of its Logan, Utah, facilities as the Automation Products Group Inc. under private ownership of the Lazzara family." He added, "We look forward to continuing to provide our APG customers with the highest quality sensor products and continue our long history of product innovation in that area."
Scientific Technologies Inc.
Automation Products Group Inc.