EDAC Technologies Corp. (EDAC), a diversified manufacturer of precision components for aerospace and industrial applications, on Monday said it has entered into a definitive deal to be acquired by GB Aero Engine LLC, an affiliate of private equity firm Greenbriar Equity Group LLC, for an aggregate equity value of about $104.1 million.
The acquisition will be for $17.75 per share in cash, pursuant to a cash tender offer and second step merger.
EDAC said its board of directors has unanimously approved the agreement and recommended that its shareholders accept the offer and tender their shares into the offer.
Under the deal terms, EDAC shareholders will receive $17.75 in cash for each share of EDAC common stock, representing a premium of approximately 29.6 percent over EDAC's average closing price during the 90 trading days ending March 15, and a 19.8 percent premium over its average closing price during the 30 trading days ending the same date.
Members of the Board and executive officers of EDAC, who own approximately 18.2 percent of the stake in total, have agreed to tender their shares into the offer.
EDAC expects the transaction to close in the second quarter of 2013, subject to customary closing conditions.
Dominick Pagano, EDAC President and Chief Executive Officer, said, "We believe that Greenbriar clearly understands our markets and that this transaction will allow EDAC to continue to focus on delivering high quality products and services to our customers. We look forward to the next phase of our company following the transaction."
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