Shares of Midas (MDS) rocketed in morning market action after the auto-repair chain said it would be taken private by replacement-tire supplier TBC for $11.50 a share.
At $11.45 a share, the stock hit a new 52-week high today, jumping more than 27%.
Midas, based in Itasca, Ill., provides maintenance and repair service at more than 2,250 franchised, licensed and company-owned Midas shops in 14 countries. It also owns the SpeeDee Oil Change business with 161 auto service centers in the United States and Mexico.
The all-cash deal is worth roughly $173 million, and represents a 28% premium over MidasÂ closing price of $8.99 a share on Monday.Â TBC, a Florida unit of Japan’s Sumitomo, valued the deal at $310 million, including the assumption of debt and pension liabilities.