Jacuzzi agrees to buyout offer
WEST PALM BEACH, Fla. (AP) -- Jacuzzi Brands Inc., maker of whirlpool baths and plumbing products, said Wednesday it agreed to a 990 million buyout offer from the private equity firm Apollo Management LP.
Under terms of the deal, Jacuzzi stockholders will get 12.50 per share in cash, a premium of 21 percent over the Tuesday closing price of 10.35.
Apollo will also assume 260 million in debt in the deal.
Jacuzzi shares rose 2, or 19 percent, to 12.35 in trading on the New York Stock Exchange.
Apollo bought the retailer Linens 'n Things earlier this year and recently co-bid for the casino operator Harrah's Entertainment Inc.
Apollo said it plans to sell Jacuzzi's plumbing business, Zurn, to mechanical engineering affiliate Rexnord Corp.
In a separate statement, Rexnord confirmed those plans, saying it agreed to pay about 950 million, provided the Apollo purchase goes through.