PHILADELPHIA (Reuters) - PW Eagle Inc. PWEI.O, a plastic pipe manufacturer, said on Monday it agreed to be acquired by rival J-M Manufacturing for $33.50 per share, giving the combined company greater geographic reach and a broader mix of products.
Based on PW Eagle’s average diluted common shares outstanding as of September 12, the deal is valued at about $418 million. The $33.50-per-share price marks a 12-percent premium over PW Eagle’s closing stock price of $29.86 on Friday. The U.S. financial markets were closed on Monday.
In May, 2006, PW Eagle said it would form a committee to explore strategic alternatives. The auction of the company “generated interest from numerous parties,” PW Eagle said.
PW Eagle said its largest shareholder, Pirate Capital LLC, has agreed to vote in favor of the transaction. The deal is expected to close during the second quarter of 2007. Pirate Capital could not be immediately reached for comment.
PW Eagle makes pipes and fittings and operates 12 manufacturing facilities across the United States. J-M operates 14 manufacturing plants in the U.S., producing pipes for water, sewer, electrical conduits and other uses.