By Lisa Kerner
Charlotte, N.C., Jan. 16 - J-M Manufacturing Co., Inc. entered into a definitive merger agreement to acquire PW Eagle, Inc. for $33.50 per share in cash in a transaction worth an estimated $400 million.
The transaction is expected to be completed during the second quarter of 2007, according to a company news release.
A termination fee of 3% of the total consideration, up to $2.5 million, is included in the agreement.
"With manufacturing facilities throughout North America, the combined company will have broader geographic reach, offer an expanded product line, and deliver value to customers and end users in new and innovative ways,'" J-M Manufacturing president and chief executive officer Walter W. Wang said in the release.
J-M Manufacturing, based in Livingston, N.J., operates 14 plastic pipe manufacturing facilities.
Based in Eugene, Ore., PW Eagle operates 12 plastic pipe manufacturing facilities in eight states.
| Acquirer: | J-M Manufacturing Corp.
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| Target: | PW Eagle, Inc.
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| Price per share: | $33.50
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| Transaction value: | $400 million
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| Termination fee: | $2.5 million
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| Announcement date: | Jan. 16
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| Expected closing: | Second quarter 2007
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| Stock price for target: | Nasdaq: PWEI: $29.86 on Jan. 12
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