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United Tech sets purchase
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October 16, 2000: 8:51 a.m. ET
Diversified manufacturer buys Specialty Equipment for $700M stock and debt
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NEW YORK (CNNfn) - Aerospace manufacturer United Technologies Corp. agreed Monday to acquire Specialty Equipment Cos. Inc. for $700 million in stock and debt.
Hartford, Conn.-based United Technologies will pay $30.50 a share, representing a 26 percent premium over SEC's closing price of $24.19 Friday. It also will assume $100 million of Specialty Equipment debt.
Specialty Equipment will be merged into United's Carrier Corp. unit.
 Specialty Equipment's largest shareholder and other related parties holding about 40 percent of its shares have agreed to support the purchase.
Aurora, Ill.-based Specialty Equipment (SEC: Research, Estimates) makes and markets refrigeration equipment, soft-serve ice cream and frozen desert dispensers, and commercial cooking and holding equipment. It earned $72 million on sales of $502 million in fiscal 2000.
United Technologies (UTX: Research, Estimates) provides high-technology products such as Pratt & Whitney aircraft engines and Carrier heating and air conditioning systems, to the aerospace and building systems industries.
United Technologies shares rose $1.69 Friday to close at $69.69, while Specialty Equipment rose 25 cents to $24.19. 
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