By Lisa Kerner
Charlotte, N.C., Sept. 28 - GenTek Inc. agreed to be acquired by ASP GT Acquisition Corp., a wholly owned subsidiary of investment funds managed by private equity firm American Securities LLC.
ASP will begin a tender offer on or before Oct. 9 to buy all of GenTek's outstanding common stock for $38 per share.
The transaction is valued at $673 million including the assumption of debt.
GenTek president and chief executive officer William E. Redmond Jr. said the per-share price is a 40.7% premium over GenTek's closing share price on Friday.
The board of directors of GenTek is recommending that shareholders tender their shares in the offer.
Moelis & Co. advised GenTek and provided a fairness opinion to GenTek's board.
GenTek is a Parsippany, N.J., manufacturer of industrial components and performance chemicals.
American Securities is a private equity firm with offices in New York and Shanghai.
| Acquirer: | American Securities LLC
|
| Target: | GenTek Inc.
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| Announcement date: | Sept. 28
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| Price per share: | $38.00
|
| Expected closing: | Upon approvals
|
| Stock price for target: | Nasdaq: GETI: $27.00 on Sept. 25
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