By Saabira Chaudhuri
An affiliate of private-equity firm Greenbriar Equity Group LLC
has extended its tender offer to acquire EDAC Technologies Corp.
(EDAC), after receiving a weak response.
GB Aero Engine LLC has extended the offer deadline to April 30
from April 23. As of Monday, it had received tender for about 34%
of EDAC's outstanding shares.
In March, EDAC agreed to be acquired by GB Aero Engine in a deal
valuing it at roughly $100 million. Holders will receive $17.75 a
share. EDAC's board and executives, who have a combined stake of
about 18.2%, agreed to tender their shares to the offer.
Later that month, MidOcean Partners, along with Public Sector
Pension Investment Board, made a bid for Edac that valued the
aerospace and industrial-components maker at about $105 million,
looking to trump the existing deal. But MidOcean later withdrew its
bid for EDAC for undisclosed reasons.
EDAC has two business segments, its aerospace segment and the
industrial division, which includes its Apex Machine Tool and EDAC
Machinery lines. The aerospace unit's sales include stationary
components for Boeing Co.'s (BA) Dreamliner and General Electric
Co.'s (GE) GE 90 aircraft engines, as well as rotating parts for
industrial gas turbines and development parts for geared turbofan
engines from United Technologies Corp.'s (UTX) Pratt & Whitney
unit.
The deal with Greenbriar's affiliate is expected to close in the
second quarter.
Shares of EDAC were halted in recent trading. The stock has
risen 44% so far this year.
Write to Saabira Chaudhuri at saabira.chaudhuri@dowjones.com
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