Bath and spa products maker
( JJZ) agreed to be bought out by private equity firm Apollo Management for $990 million, the companies said Wednesday.
Apollo will pay $12.50 a share for the West Palm Beach, Fla., company, representing a 21% premium over the stock's closing price Tuesday. Including the assumption of debt, the deal is valued at $1.25 billion.
Jacuzzi Brands operates under two segments: Zurn, a plumbing business, and Jacuzzi, a seller of bath, spa and shower products. After the deal's completion, Apollo plans to sell the Zurn business to one of its portfolio companies, power-transmission products maker Rexnord, which will operate it as a separate entity.
George Sherman, chairman of Rexnord, is a co-investor in the deal and will become chairman of Jacuzzi Bath.
The deal is expected to close in the first quarter of 2007.
Shares of Jacuzzi Brands soared $1.80, or 17%, to $12.15 in premarket trading.