Blount Absolutely Soars on Acquisition Agreement

Industrials

Published: December 10, 2015 1:55 pm

Last Updated: January 13, 2020 4:13 pm

Blount International Inc. (NYSE: BLT) led the bulls in Thursday’s regular trading session on news of a buyout. The company announced that it entered into a definitive agreement to be acquired by affiliates of American Securities and P2 Capital Partners, in an all-cash transaction valued at roughly $855 million, including the assumption of debt.

Under the terms of the proposed transaction, Blount shareholders will receive $10.00 in cash for each share of Blount common stock they hold, representing a premium of 86% to Wednesday’s closing stock price.

The independent members of Blount’s board of directors unanimously approved the transaction.

What makes this merger somewhat unique is a 50-day “go-shop” period that runs through the end of January 2016. The goal of this is to maximize value for Blount shareholders.