(Cornerstone Building Brands Inc.) CNR rose more than 13% on Monday after confirming a $5.8 billion acquisition deal by affiliates of Clayton, Dubilier & Rice.
The all-cash transaction will entitle Cornerstone shareholders to $24.65 in cash per share, about a 16% premium to the closing price on March 4, 2022. The transaction is also 75% premium to the share closing on February 4, 2022, when speculations of the purchase emerged.
CD&R currently ranks as the beneficial owner of Cornerstone, with about 49% of ownership in the company’s common stock.
Cornerstone President CEO Rose Lee says the deal provides a substantial value to the company’s shareholders and sets it on course to becoming a premier exterior building solutions provider.
CD&R partner J.L Zrebiec lauded Cornerstone’s product portfolio and team, which he says are key to meeting the needs of the evolving market.
The transaction is expected to close in the second or third quarter of the year and will see Cornerstone become a private-held entity.
CNR: NYSE is up +13.66% on premarket.
