GenTek Approves $387M Buyout

PARSIPPANY, N.J. (AP) -- GenTek Inc., which provides chemical products and engine components, said Monday that it agreed to be acquired by a subsidiary of private-equity firm American Securities LLC.

GenTek said shareholders will receive $38 per share. That represents a 41 percent premium over GenTek's closing price of $27 on Friday, the last trading day before the agreement was signed.

The companies said the transaction was valued at $673 million, which includes $411 million in equity value and $262 million in debt and other liabilities.

GenTek had about 10.2 million shares outstanding as of July 31, according to a filing with the Securities and Exchange Commission.

The tender offer is expected to start on Oct. 9.

GenTek said its board unanimously approved the deal and is recommending that shareholders do likewise.

GenTek, which has about 1,100 employees, is based in Parsippany. American Securities is based in New York.

Shares of GenTek advanced $10.70, or 40 percent, to $37.70 in morning trading.

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