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Why Mac-Gray Shares Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Mac-Gray (UNKNOWN: TUC.DL  ) were flying today, climbing as much as 42% after it agreed to sell itself to CSC ServiceWorks for $524 million.

So what: Mac-Gray, which operates coin laundry machines and gas-station air machines, agreed to the all-cash deal for $21.25 a share, which represents a 42% premium over its closing price yesterday. Shares jumped to an all-time high on the news. Mac-Gray Chairman Thomas Bullock said the deal "maximizes value for our shareholders, and provides a significant premium." With CSC in the same coin-operated line of businesses, the deal seems like a smart move for CSC as well.

Now what: There's not much more to say about this one. Shares were trading at $21.15 early this afternoon, indicating a high level of confidence in the deal going through as agreed upon. Mac-Gray said it expects it to be completed in the first half of next year.

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Related Tickers

12/31/1969 7:00 PM
TUC.DL $0.00 Down +0.00 +0.00%
Mac-Gray Corporati… CAPS Rating: No stars