NEW YORK ( TheStreet) -- A consortium of buyers led by a Goldman Sachs (GS - Get Report) private equity fund and P2 Capital Partners is buying industrial products services company Interline Brands (IBI) for $25.50 a share, or $1.1 billion, when including the company's debt.
The deal comes at a 42% premium to Interline Brands Friday close of $17.94 and represents the Jacksonville, Fla.-based seller of plumbing, hardware and air conditioning products highest share price since 2007. As part of the deal, Goldman Sachs Capital Partners will take an equity stake in Interline Brands, while its banking unit and Bank of America (BAC - Get Report) will provide debt financing.
In addition to the private equity funds participating in the buyout, Interline Brands said some members of its management team will invest in the deal. According to Nasdaq compilations of Securities and Exchange Commission filings, Interline CEO Michael Grebe is the largest insider with over 35,000 Interline shares, which represents less than 1% of the company's outstanding stock. Interline's largest institutional holders include FMR, Columbia Wanger Asset Management and P2 Capital Partners, all with over 7% share stakes.
Interline Brands said in a release that its board had approved the private equity offer, but that it will solicit third party bids through June 28. If no offer emerges, the deal should close by the third quarter.Interline Brands rose over 39% to $25 in Tuesday pre-market trading, slightly below Goldman and P2's offer. Prior to Tuesday's buyout, Interline Brands had risen over 15% in 2012, but its shares were off over 2% in the past 12 months.