Multi Packaging's Stock Soars After Deal To Be Bought Out By WestRock

By Tomi KilgoreMarketsMarketWatch Pulse

Shares of Multi Packaging Solutions International Ltd. shot up 24% toward a 13-month high in premarket trade Tuesday, after the provider of packaging services agreed to be acquired by WestRock Co. in a deal valued at $2.28 billion, including $873 million in debt. Under terms of the deal, WestRock will pay $18 for each Multi Packaging share outstanding. That represents a 25% premium to Monday's closing price, and implies a market value of $1.39 billion for Multi Packaging. The announcement comes a day after WestRock said it expected to make $1 billion from the sale of assets to Silgan Holdings Inc. . The deal is expected to close during the quarter ending in June 2017. Multi Packaging's stock has lost 10% over the past 12 months through Monday, while WestRock shares have run up 56% and the S&P 500 has climbed 19%.

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