Clevite Industries Inc. said Monday that it had signed a definitive agreement to be acquired by Pullman-Peabody Co. for $17.50 a share in cash, or about $160 million.
Clevite, a suburban Glenview-based maker of components for industrial transportation markets, has been the target of takeover interest in recent months.
The surprise announcement came three days after a group led by First Chicago Corp.`s investment subsidiary sweetened its offer to buy Clevite to $13.50 a share from $11.50.
Earlier last week, J.P. Industries ended an unsolicited $13.50-a-share bid for Clevite.
Clevite said Pullman, of Princeton, N.J., offered $17.50 a share for each of its 5.3 million common shares outstanding and its 1.3 million nonvoting common shares. Preferred share holders will receive $100 a share.
If the acquisition is blocked under certain conditions, Pullman would receive a fee of $7 million, which is an attempt by the two companies to prevent another suitor from pursuing Clevite.
Clevite said Pullman would begin the tender offer about June 1.
Clevite became a publicly held company just last June.
