NEW YORK (TheStreet) -- Shares of Accuride (ACW) were surging 53.29% to $2.56 on heavy trading volume mid-Friday afternoon after the vehicle parts manufacturer announced it had entered a definitive agreement to be acquired by New York-based private equity firm Crestview Partners for $2.58 per share.
The purchase price represents a premium of 55% over Accuride's closing share price on September 1st, 2016, and a premium of 66% over the 30-day volume weighted average price as of the same date.
The merger agreement contains a 35-day "shopping" period in which Evansville, IN-based Accuride can seek additional bids.
The transaction has been unanimously approved by Accuride's board of directors and is expected to close by the 2016 fourth quarter.
Following the deal's close, the company will remain an independent global entity, operating under its own management and brand name.
Additionally, Accuride completed the sale of its Brillion Iron Works unit to a subsidiary of Metaldyne Performance Group (MPG) for $14 million on Friday, according to a statement.
The Brillion unit specializes in the design and production of iron castings.
"Today's action will enable Accuride to focus completely on our strategic vision to be the premier supplier of wheel-end system solutions to the global commercial vehicle industry," Accuride CEO Rick Dauch said in a statement.
More than 5.55 million of the company's shares have traded so far on Friday vs. the 30-day average of roughly 163,000 shares.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "sell" with a ratings score of D.
The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, generally high debt management risk, disappointing return on equity and weak operating cash flow.
You can view the full analysis from the report here: ACW