Why did Weber (WEBR) stock rise at market opening today?

By - Rupam Roy


  • The WEBR stock jumped over 31 per cent in the morning hours on October 25.
  • The company received a non-binding acquisition proposal from a private equity firm.
  • The firm's stock touched its 52-week low on October 24.

The stocks of the manufacturing firm Weber Inc. (NYSE: WEBR), were among the top percentage gainers in the early session on Tuesday, October 25, after it announced it received a non-binding acquisition proposal.

Following the news, the WEBR stocks were up over 31 per cent in the morning trading. Let's look at the acquisition proposal it recently received and see why the market participants are lauding the news.

What's in the deal?

Weber is an NYSE-listed manufacturing firm that produces charcoal, gas, electric outdoor grills, and other related items. The Palatine, Illinois-based company's stock went up after unveiling an acquisition proposal it received from a private investment banking firm.

According to the announcement, the private equity firm BDT Capital Partners LLC has proposed a non-binding acquisition offer to acquire all the outstanding shares of Class A common stock of the US$ 346.04 million market cap company.

Weber said that BDT Capital proposed to acquire all the shares that are not already owned by them, at US$ 6.25 apiece.

The board of directors of the cooking products and other related accessories manufacturer had previously formed a special committee to evaluate any potential deal from BDT Capital or any alternatives available to the company.

However, Weber said in its release that there is no guarantee of any definitive agreement or transaction from the proposal it received from BDT Capital. The company and its "special committee" said they "do not intend" to say anything more about the submitted acquisition proposal until they consider further disclosure.

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Bottom line:

The price of the WEBR stock was US$ 6.59 at 9:37 am ET on October 25, an increase of 31.01 per cent from its prior close of US$ 5.03, while its trading volume during writing was over 2.31 million.

However, despite the gains, the stock of Weber Inc was down over 49 per cent YTD and 61 per cent YoY. Meanwhile, the non-binding acquisition proposal's announcement came a day after the manufacturing firm's stock touched its 52-week low of US$ 4.82.