PW Eagle Soars on Buyout

The pipemaker will be acquired by privately held J-M Manufacturing for $400 million.
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Shares of

PW Eagle

(PWEI)

surged 11% Tuesday after the maker of PVC pipe products agreed to be acquired by privately held pipemaker

J-M Manufacturing

for roughly $400 million in cash.

J-M will pay $33.50 a share, representing a premium of about 12% over PW Eagle's Friday closing price of $29.86.

"With the announcement of this merger, we believe the strategic committee of PW Eagle's board of directors has fulfilled its pledge to maximize shareholder value following a thorough process during which a wide range of strategic alternatives were considered," PW Eagle said in a statement.

The deal is expected to be completed during the second quarter.

Shares of PW Eagle recently were up $3.14 to $33.