International Aluminum agrees to be acquired by Genstar
International Aluminum Corp., has agreed to be acquired by an affiliate of Genstar Capital, LLC for $53.00/share in cash in a transaction valued at nearly $228 million, the company said Wednesday. International Aluminum, a manufacturer of aluminium and vinyl products for the building industry, is based in Monterey Park, California.
The Genstar offer represents a premium of nearly 6% over International Aluminum's closing price on January 9, the last trading day before disclosure of the merger, and a 19.4% premium over the average closing price during the sixty trading days ended January 9, the company said.
International Aluminum's board of directors unanimously approved the merger agreement, and will also recommend approval by International Aluminum's shareholders.
The transaction will be financed through a combination of an equity investment by Genstar and debt financing, which has been committed by CIBC, Inc. Completion of the transaction pending regulatory approval is expected in the second quarter.
Genstar Capital Managing Director Darren J. Gold in a statement said, "Genstar has a very successful track record of investing in building products companies like International Aluminum. We hope to leverage this experience to continue the company's long history of success."
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