Houston Wire & Cable Company (NASDAQ: HWCC) was the biggest gainer premarket on Thursday after the company revealed that they are to be acquired by OmniCable.
HWCC’s share price is up 37.2% at $5.27 after the open on Wall Street.
OmniCable will acquire all outstanding shares of HWCC common stock for $5.30 per share in an all-cash transaction valued at $91 million.
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The price represents a premium of 39% to HWCC’s closing price of $3.80 on March 24th and an 89% premium to the $2.81 average closing price for the previous 12-months.
OmniCable is a subsidiary of Dot Holdings Co, owned by Dot Family Holdings, owners and operators of Dot Foods, Inc, the largest food industry redistributor in North America.
The companies said that the two businesses are highly complementary and will result in a national wire and cable redistribution company that will maximise both groups.
“This merger creates an outstanding combination of leading businesses that will be well-positioned to provide increased value and customer service to its redistributor partners,” said James Pokluda III, HWCC’s President & CEO.
Once the transaction is closed, HWCC shares will no longer be listed on any public market. The company also revealed it will be filing its 2020 Annual Report later today.