Hawker looks set to get Gardner
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MANCHESTER-based Gardner engines now seem likely to sell out to industrial giants Hawker Sickleley in a £14.7 million takeover move by the former aerospace company.
The takeover seems certain, as the Gardner family has agreed to sell its 43.3 per cent holding at 340p a share with an alternative of two Hawker shares for every Gardner share.
A Hawker spokesman described the company as "a specialist engine undertaking that will add to the Hawker range of products."
The company would retain its separate name and not be absorbed as a division of Hawker Siddeley.
Gardner chairman Clayton Flint told CM that things were going well and the Hawker offer seemed a good price.
"When we got an offer from Hawkers, we decided we would not be exposed to the risks of the open market. But we were perfectly happy before the bid, and I would have been quite happy to stay on as chairman," said Mr Flint.
"We have never made enough engines for the market, but the family has held tight and worked for small returns for five generations. What is the future in another five generations?"
Mr Flint said the family and the company had taken a long time to think about the offer and had now decided it would be "a very statesmanlike move for the company."
He and the members of the Gardner family connected with the firm would probably stay with the company — although there would probably be some new members on the Gardner board.
Mr Flint revealed that Rolls-Royce, whose second bid for Fodens had just been rejected, had been buying parcels of shares in Gardners on the Stock Exchange.
The shares had been bought at 370p, 380p, and 390p before the price dropped back to 370p. The Hawker offer price is 340p.
Between £6 million and £7 million will be paid to the Gardner family for its holding in the company if the bid is accepted. This is considered a reasonable price by financial experts.