TRC Companies To Be Bought Out At a 47% Premium

TRC Companies Inc. announced Friday a deal to be acquired by New Mountain Partners IV in a deal that values the construction management firm at about $554.6 million. Under terms of the deal, New Mountain, a fund managed by New York's New Mountain Capital, will pay $17.55 a share in cash for each TRC share outstanding, representing a 47% premium to Thursday's closing price of $11.95. TRC has about 31.6 million shares outstanding, according to FactSet. "This transaction will deliver immediate value to our shareholders while enabling TRC to continue to pursue its long-term growth strategy," said TRC Chief Executive Chris Vincze. "We are confident this partnership with New Mountain Capital represents the best path forward for all of TRC's stakeholders." The stock, which was halted for news, has rallied 13% year to date, while the S&P 500 has gained 5.8%.