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Consolidation in the aerospace and defense supply chain is moving at price.
Against the backdrop of sector-wide demand for specialist hardware, Teledyne Technologies (TDY) has agreed to acquire X-ray company Varex Imaging (VREX) in a deal valued at approximately $1.1 billion, sending Varex shares more than 48% higher in a single session.
The offer: $18.90 a share at a 52% premium Teledyne will pay $18.90 per share in cash for Varex, representing a 52% premium to the X-ray company's closing price before the deal became public.
The all-cash structure places the full consideration on Teledyne's balance sheet rather than on its own share price, and removes any dependency on equity market conditions in the period before the transaction closes.
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