Brookfield Agrees to Buy Graphite Maker for $546 Million

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Brookfield Asset Management Inc. agreed to acquire GrafTech International Ltd., a U.S. maker of graphite used in electrodes, in a deal valued at about $546 million.

Brookfield is offering $5.05 a share in cash, Independence, Ohio-based GrafTech said Monday in a statement, a 2 percent premium to Friday’s closing price.

The completion of the transaction requires the tendering of about 75 percent of GrafTech shares. The offer is supported by investors including director Nathan Milikowsky who collectively hold about 11 percent of the company.

Milikowsky said in February that he backed a new slate of directors and the replacement of Chief Executive Officer Joel Hawthorne, citing the company’s poor performance. GrafTech has posted seven successive quarterly losses and its shares are down 52 percent over the past 12 months.

Monday’s deal has an enterprise value of about $1.06 billion, according to data compiled by Bloomberg. It comes less than two weeks after Toronto-based Brookfield said it may make an offer and also may buy $150 million of 7 percent convertible preferred GrafTech shares.

GrafTech gained 2 percent to $5.05 in New York.