OM Group (OMG) Stock Soaring After Being Acquired by Apollo Funds

NEW YORK (TheStreet) -- Shares of OM Group Inc  (OMG) were soaring, sharply up 27.69% to $33.89 on heavy volume in early market trading Monday after the company agreed to be acquired by funds managed by affiliates of Apollo Global Management, LLC (APO) for $34 per share.

The purchase price of OM Group represents roughly a 28% premium over its closing share price from May 29, 2015.

Platform Specialty Products (PAH) will acquire OM Group's electronic chemicals and photomasks businesses from the Apollo Funds in two separate transactions for a total cash consideration of $365 million.

"Last year, we launched a comprehensive review of strategic alternatives, resulting in our board of directors unanimously concluding that this acquisition of the company is the best course of action to maximize value for OM Group stockholders," said OM Group chairman and CEO Joseph Scaminace in a statement.

About 1.53 million shares of OM Group have exchanged hands as of 9:56 a.m. ET today, compared to its average trading volume of about 192,780 shares a day.

Cleveland, Ohio-based OM Group is a technology-driven industrial company that serves markets, including automotive systems, electronic devices, aerospace and defense, industrial and medical.

The company operates in three segments including magnetic technologies, battery technologies, and specialty chemicals. 

Separately, TheStreet Ratings team rates OM GROUP INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate OM GROUP INC (OMG) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."

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