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.