American Securities and P2 Capital Partners have agreed to acquire Blount International, a maker of replacement parts, equipment and accessories for the agricultural and forestry markets, for $10 per share or about $855 million in cash.
The price represents an 86 percent premium to the Dec. 9th closing price of Blount’s stock.
The transaction is expected to close in the first half of 2016. The deal includes a 50-day “go-shop”which runs through Jan. 28. During this period, the Special Committee will actively solicit alternative offers for Blount.
Barclays Bank and KeyBank Capital Markets will provide debt financing for the transaction. Also, Blount CEO/Chairman Josh Collins and David Willmott, president and chief operating officer, will invest all of their net proceeds from the deal in Blount.
Goldman, Sachs is providing financial advice to Blount while Greenhill & Co. is advising the Blount Special Committee.
Photo of tractor courtesy of Shutterstock.