• Otis Worldwide Corp (NYSE: OTIS) announced a tender off for all of the shares it does not currently own in Zardoya Otis, S.A. for an offer price of €7.00 in cash.

• The offer price represents a premium of 28.9% to Zardoya's 1-month volume-weighted average price.

• The deal implies a total equity value, including Otis' existing interest, of €3.3 billion.

• Madrid, Spain-based Zardoya Otis is a premier elevator original equipment and service business.

• Zardoya Otis generated revenue of €801 million and EBITDA of €223 million for the 12 months ending May 31, 2021.

• The parties expect the deal to close in 2Q22. Zardoya Otis will delist from the Madrid, Barcelona, Bilbao, and Valencia Stock exchanges.

• Otis expects the deal to be up to mid-single-digit percentage accretive to its adjusted EPS starting 2023. It expects 2022 EPS accretion of 3 to 5 cents.

• Otis Worldwide held cash and cash equivalents of .92 billion as of June 30, 2021.

• Otis continues to target its current investment grade credit ratings and plans to repay $800 million of existing debt and suspend share repurchases in 2022.

• Price Action: OTIS shares are trading higher by 2.57% at $86.46 on the last check Thursday.

See more from Benzinga

• Click here for options trades from Benzinga

• China Yuchai Invests In New Energy Technologies

• Goldman Sachs Upgrades Northrop Grumman, General Dynamics & Downgrades L3Harris, Lockheed Martin

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.