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HIG Capital to Acquire American Pacific for About $392 Million

Awardee Story HIG Capital to Acquire American Pacific for About $392 Million
Date: Jan 10, 2014
Author: Lauren Pollock
Source: Wall Street Journal ( click here to go to the source)

By Lauren Pollock
Jan. 10, 2014 9:54 a.m. ET

Chemicals company American Pacific Corp. APFC 0.00% has agreed to be acquired by investment firm HIG Capital LLC for about $392 million.

American Pacific makes fine and special chemicals for the pharmaceutical, aerospace and defense and fire-protection industries, among others.

HIG will begin a tender offer to acquire all American Pacific's shares at $46.50 each, a 19% premium to Thursday's closing price. Those shares not tendered will be acquired in a second-step merger at the same cash price.

American Pacific shares have been volatile in recent months. They began 2013 at about $17 each and steadily climbed, hitting a high of $60.36 in early October. Since then, however, they have eased 35% through Thursday's close.

The gains were spurred as the company posted double-digit increases in profit and revenue in recent periods, led by strength in its fine and specialty chemicals segments. But investors have pulled the stock price back down in recent months from that previous lofty level.

American Pacific's board has unanimously approved the deal.

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