shot up more than 20% Tuesday after the solid-waste services company agreed to go private for a huge premium.
Founder and Chairman Lonnie Poole, along with CEO Jim Perry, led the buyer consortium that inked the $544 million all-cash deal. That pans out at $38 a share -- 28% higher than Monday's closing price. The figure also represents a one-third premium over the stock's last close on Oct. 22, when the company first received the group's original offer and relayed the news to
Raleigh, N.C.-based Waste Industries said the initial $36.75 bid was lifted through "extensive negotiations" after a special committee of company directors, with advice from outside financial and legal advisors, determined it was fair to the company and to shareholders.
If approved by shareholders and regulators, the takeout should close during the first half of next year.
Poole commented that the transaction will give Waste Industries "the level of investment necessary to further develop its business while at the same time delivering what we believe is an attractive premium to shareholders."
He also said that the company's employees and customers "will experience little change as a result of the take private and should expect business as usual."
Recently, shares were surging $6 to $35.69.