Primestone Capital has urged US-based cleaning equipment company Tennant and Danish equipment manufacturer Nilfisk to merge.
London-based Primestone Capital – which has a 5.2 per cent stake in Tennant and 5.6 per cent stake in Nilfisk – said it believed a merger would create earnings per share (EPS) accretion in excess of 85 per cent for both companies, according to a report by Reuters.
“Primestone Capital owns more than 5 per cent of both Tennant and Nilfisk and believes a combination of the two will generate extraordinary returns for shareholders,” the London-based firm said in a filing with the US Securities and Exchange Commission.
Tennant Company confirmed the Schedule 13D filed by Primestone Capital with the Securities and Exchange Commission and said it “welcomes the views of all its shareholders and always considers their thoughts on the Company’s business and strategy”.
“Tennant’s board and management team remain supportive of the company’s strategic growth plan, which continues to deliver sustainable value for our shareholders.
“The company and its board of directors will carefully evaluate Primestone’s views and look forward to discussing with all our shareholders our core strategy to continue driving earnings growth and shareholder value going forward.”
Nilfisk said it is aware of the public filing, and that its overall strategy continues to be to simplify its business and to grow organically.