If you haven’t heard of Diversey (NASDAQ:DSEY), that’s not surprising. This little chemical company isn’t exactly a household name. However, it’s a big name to somebody, as the stock blasted up over 37% at the time of writing.
Diversey proved a big enough name to draw interest from Solenis, a portfolio company connected to Platinum Equity. Solenis was sufficiently interested in Diversey, in fact, to shell out $4.6 billion for the company outright. That means Diversey will be acquired for $8.40 a share. Once the merger completes—which is expected in the second half of this year—Diversey will be a privately-held company.
The combined company will be led by John Panichella, who is currently CEO of Solenis. To drum up the needed cash to complete the deal, Solenis will use a combination of debt financing and equity financing. It will also have a little help coming in from Bain Capital, who will not only get a cash payment, but also a chunk of equity in the combined operation.
DSEY stock was trending slightly downward over the last five days until news of the buyout hit and sent shares spiking. Prices have since leveled off as they are now approaching the buyout price Solenis offered.
