Why Mac-Gray Shares Popped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Mac-Gray were flying today, climbing as much as 42% after it agreed to sell itself to CSC ServiceWorks for $524 million.
So what: Mac-Gray, which operates coin laundry machines and gas-station air machines, agreed to the all-cash deal for $21.25 a share, which represents a 42% premium over its closing price yesterday. Shares jumped to an all-time high on the news. Mac-Gray Chairman Thomas Bullock said the deal "maximizes value for our shareholders, and provides a significant premium." With CSC in the same coin-operated line of businesses, the deal seems like a smart move for CSC as well.
Now what: There's not much more to say about this one. Shares were trading at $21.15 early this afternoon, indicating a high level of confidence in the deal going through as agreed upon. Mac-Gray said it expects it to be completed in the first half of next year.
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The article Why Mac-Gray Shares Popped originally appeared on Fool.com.Fool contributor Jeremy Bowman has no position in any stocks mentioned. The Motley Fool owns shares of Mac-Gray. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.