Farmington Aerospace Company Sold To Private Equity Group
FARMINGTON, Conn. (AP) _ EDAC Technologies Corp. said Monday that its board has agreed to sell the aerospace and industrial company to an affiliate of private equity firm Greenbriar Equity Group LLC for about $93.2 million.
Under the terms of the agreement, Greenbriar will pay $17.75 per share for the Farmington, Conn.-based company. The price represents an 8 percent premium over EDAC’s Friday closing stock price of $16.44.
EDAC designs, manufactures and services precisions components.
Its shares rose $1.23, or 7.5 percent, to $17.67 in premarket trading.
Based on the company’s about 5.25 million outstanding shares, the deal is worth about $93.2 million. EDAC said the deal has an aggregate equity value of about $104.1 million.
Greenbriar’s GB Aero Engine LLC will begin a cash tender offer to buy all of EDAC’s outstanding common stock no later than March 26.
EDAC’s board recommended that the company’s stockholders tender their shares. EDAC executives and members of its board who own a total of about 18.2 percent of the company’s outstanding stock have agreed to tender their shares.
Assuming a majority of the shares are tendered, EDAC said it expects the deal to close in the second quarter. The deal is not subject to a financing condition.
In connection, EDAC said that its annual shareholder meeting, which was previously scheduled for May 1, has been postponed until further notice.
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