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Southwall agrees to be bought by Solutia for $113M

Solutia will buy Southwall Technologies Inc. for $113 million, or $13.60 per share in cash, the company said Friday.Solutia Inc which makes performance materials and specialty chemicals, agreed to pay a premium of 45 percent based on Southwall's Thursday closing price of $9.38 per share. The...

Solutia will buy Southwall Technologies Inc. for $113 million, or $13.60 per share in cash, the company said Friday.

Solutia Inc which makes performance materials and specialty chemicals, agreed to pay a premium of 45 percent based on Southwall's Thursday closing price of $9.38 per share. The companies said the boards of directors of both companies have approved the sale. The St. Louis company plans to start an offer for Southwall shares by Oct. 25.

The stock jumped $4.15, or 44.2 percent, to $13.53 in morning trading. Shares of Solutia rose 30 cents, or 2.2 percent, to $14.08.

Southwall is based in Palo Alto, Calif., and it makes films and glass products designed to improve the energy efficiency of buildings, homes, and cars. The company had 5.8 million shares on the market as of July 29. Its shares have traded between $7.79 and $14.95 in the last year.

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