WASHINGTON (dpa-AFX) - Auto component maker Autokiniton Global Group or AGG agreed Friday to acquire peer Tower International, Inc. (TOWR) for $31 per share in cash. AGG is a portfolio company of private equity firm KPS Capital Partners with over $5.0 billion of assets under management.
The all-cash transaction represents a 70 percent premium to Tower's closing stock price on July 11, 2019. Including Tower's debt and pension related liabilities, the total value of the transaction is about $900 million.
The transaction is anticipated to close in September or October of 2019, whereby a wholly-owned subsidiary of AGG will merge with and into Tower.
The definitive agreement includes a 35 day 'go-shop' period, which permits Tower's Board and financial advisor to actively initiate, solicit and consider alternative acquisition proposals. Additionally, Tower has agreed to forego paying dividends through the consummation of the transaction.
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