Why Welbilt Stock Jumped Over 30% Today
Shares of commercial foodservice company Welbilt (NYSE: WBT) soared Wednesday morning after it announced plans to be acquired by larger competitor Middleby (NASDAQ: MIDD). Investors think the combination that will create a kitchen equipment supply leader in the commercial foodservice space is a good one for shareholders of both companies. As of 10:55 a.m. EDT, shares of Welbilt were up about 36% and those of Middleby were trading about 3.4% higher.
Middleby will purchase Welbilt in an all-stock transaction for an amount equal to $4.3 billion, including debt. The figure represents a 28% premium to Welbilt's 30-day average share price. Once closed, Middleby shareholders will own approximately 76%, and Welbilt shareholders will own approximately 24% of the combined company.
Image source: Middleby.
Source Fool.com
