Intertape Polymer Stock Explodes 77% on Acquisition Announcement

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Intertape (TSX:ITP) stock exploded 77% after the corporate launched it’d be bought for US$2.6 billion, or $40.50 per part.

| Extra on: ITP

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Intertape Polymer Group (TSX:ITP) shares exploded upwards 77% on Tuesday after the corporate launched it’d be bought by Clearlake Capital.

What took region?

Intertape stock soared up 77% after Clearlake Capital Group launched it can maybe engage the corporate for a whopping US$2.6 billion. This would possibly embody the complete company’s debt as neatly. Below the deal, Clearlake can pay $40.50 per part in money. As of writing, even after the upward momentum shares substitute at $39.30 per part.

The deal is a unquestionably intensive top class to the 30-day volume weighed moderate purchasing and selling value for Intertape stock. Shares of the corporate were down 16% year to this level sooner than the deal used to be launched Tuesday.

So what?

In spite of the lagging part value, Intertape stock has been doing comparatively neatly. The corporate beat out earnings estimates for the final four consecutive quarters. And within the final quarter, income elevated by 23% year over year. That’s why I had suggested it can maybe accept as true with been one amongst the corporations that doubled in March.

The deal gives the “next colossal step” in evolving Clearlake’s industry for the packaging and e-commerce ecosystems, stated Greg Yull, president and chief govt officer of Intertape stock. “Clearlake gives us the operational and monetary sources to trip our acquisition technique, as well to organic suppose opportunities corresponding to investing in product innovation, sustainability, and market enlargement,” he acknowledged.

Now what?

So, what does that enlargement witness fancy? Intertape stock needs to enlarge its e-commerce section even additional, reaching a various region of pause markets. These monetary sources present the corporate with the flexibility to enlarge to those suppose markets and create an mighty more world industry.

Shares of Intertape stock were up 76% as of writing on Tuesday, purchasing and selling at 24.7 cases earnings. It also supplies a dividend yield of 3.89%. Earnings are due Mar. 15, when the stock would possibly maybe indeed climb additional.

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