Wesco Aircraft Holdings Inc. shares rose 6.3% in premarket trade Friday, after the provider of supply chain management services to the aerospace industry said it has agreed to be acquired by a unit of Platinum Equity in a deal valued at about $1.9 billion. Wesco shares will receive $11.05 a share in cash, for a premium of about 27.5% over the 90-day volume weighted average share price for the period ended May 24, the last trading day before media speculation of a possible deal. Once the deal closes, expected by year-end, the company will be combined with Platinum Equity's portfolio company Pattonair, which also provides supply chain management services to the aerospace industry in the U.K. The deal will be financed with a mix of equity financing from units of Platinum Equity Capital and debt financing from BofA Merrill Lunch. Shares have gained 30% in 2019, while the S&P 500 (S&P:SPX) has gained 17%.
Aug. 9, 2019, 8:10 a.m. EDT