Why Is Altra Industrial (AIMC) Stock Up 48% Today?
Altra Industrial Motion (NASDAQ:AIMC) stock is taking off on Thursday after announcing an acquisition deal with Regal Rexnord.
That deal will see Regal Rexnord acquiring all outstanding shares of AIMC stock. The offer is worth $5 billion with shares of AIMC stock valued at $62 each. This will be paid in cash and represents a roughly 54% premium to the closing price of AIMC shares on Wednesday.
Carl Christenson, chairman and CEO of Industrial Motion, said the following about the deal.
“The sale of Altra to Regal Rexnord will provide our shareholders with immediate and substantial cash value, as well as a compelling premium, and the Board of Directors has agreed that this transaction is in the best interests of our shareholders.”
More Details on the Offer
Altra Industrial Motion’s Board of Directors has already approved the acquisition deal with Regal Rexnord. This just has it needing approval from regulators and shareholders. If all goes well, the deal will close in the first half of 2023.
Investors in AIMC stock are celebrating today with heavy trading sending shares higher. As of this writing, more than 5 million shares of the stock have changed hands. That’s well above its daily average trading volume of roughly 198,000 shares.
AIMC stock is up 48.4% as of Thursday morning.
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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.