Acquisition Announcement Sends Altra Industrial Motion Higher and Regal Rexnord Into Tailspin
Regal Rexnord (NYSE:RRX) agreed to acquire Altra Industrial Motion (NASDAQ: AIMC) for $62 per share in cash, sending both stocks on a wild ride today.
Shares of Regal Rexnord dropped as much as 9.5% in trading today and are at their lows for the day at 1:30 p.m. ET. Altra Industrial Motion's shares were up as much as 48.8% today and are currently up 48.4%.
The transaction values Altra at $4.95 billion in total and is 13.6 times the trailing-12-month adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). The companies say that they will have $7.2 billion in revenue on a pro forma basis in 2022 with adjusted EBITDA of around $1.5 billion.
Source Fool.com
