(Reuters) - Pencil maker Dixon Ticonderoga, which is owned by Italian group Fila (FILA.MI), agreed to buy U.S.-based school art and craft products supplier Pacon Group for $340 million.
Pacon deal is expected to double Fila’s sales in the United States, the Italian group said in a statement.
It added that the enterprise value of the deal is $325 million, excluding $15 million in tax benefits. Fila plans to finance the deal with its existing medium/long-term loan.
Fila’s board also proposed a rights offering of up to 100 million euros ($119.09 million) to be used for the early repayment of debt.
($1 = 0.8397 euros)
Reported by Anna Rzhevkina in Gdynia, editing by Louise Heavens