GCP Applied Technologies (NYSE:GCP) stock is rising higher on Monday thanks to a massive buyout deal from Saint-Gobain.
According to a press release, Saint-Gobain will acquire all outstanding shares of GCP stock for $32 per share. That price represents a 39% premium over the stock’s volume-weighted average price for the 30-trading days ended on Nov.30. At $32 per share, the buyout offer from Saint-Gobain values the deal at $2.3 billion.
Saint-Gobain already has support from the GCP Applied Technologies Board of Directors for the deal. Also, Saint-Gobain has secured confirmation from Starboard and Standard Investments, and Standard Industries to vote in favor of the deal with their respective 8.9% and 24.2% stakes.
Simon Bates, president and CEO of GCP Applied Technologies, said this about the news boosting GCP stock today.
“Today opens an exciting new era in GCP’s rich history, for our shareholders, customers and employees. We are thrilled for GCP to join Saint-Gobain, the ideal strategic partner to support our growth. Thanks to its global platform, significant resources as well as commercial and innovation expertise, Saint-Gobain is perfectly positioned to ensure the success of GCP’s operations and people over the long term.”
GCP Applied Technologies notes that the deal still needs to complete customary closing conditions. That includes getting approval from shareholders and regulators. Once that is done, the deal is expected to close in the second half of 2022.
Heavy trading of GCP stock following the buyout news today. This has some 9 million shares of the stock changing hands as of this writing. That’s quite the surge over its daily average trading volume of about 348,000 shares.
GCP stock is up 16.5% as of Monday afternoon.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.