(Reuters) - U.S.-based DXP Enterprises Inc DXPE.O will buy HSE Integrated Ltd HSL.TO, a safety services and equipment provider, for about C$70 million ($70.85 million), to boost its presence in industrial safety services in the Canadian market.
DXP, which sells maintenance, repair and operating products, equipment and services to industrial customers, is offering C$1.80 for each HSE share -- a premium of 59.3 percent to HSE’s closing price on Monday.
“HSE offers us an opportunity to expand and enhance our Safety Services division and Service Center operations while establishing a meaningful presence in Canada,” DXP CEO David Little said in a statement.
The deal is expected to close at the start of the third quarter, the companies said.
Shares of HSE rose 57.5 percent to C$1.78 on Tuesday.
Houston-based DXP Enterprises’ shares rose about 4 percent to $45.00 on Nasdaq.
($1 = 0.9880 Canadian dollars)
Reporting by Maneesha Tiwari in Bangalore; Editing by Gopakumar Warrier