What happened
Shares of Supreme Industries, Inc. (NYSEMKT: STS) jumped as much as 35.6% in trading today after getting a buyout offer from Wabash National Corporation (WNC -0.27%). At 10:55 a.m. EDT, shares were still trading 35.4% higher on the day and holding steady.
So what
Supreme Industries has agreed to be bought out by Wabash National for $21 per share for a total transaction value of $364 million. The deal was unanimously agreed to by the board of directors, who will also sell their holdings in the transaction.
Image source: Getty Images.
Chairman Herbert Gardner said the deal was agreed to after considering multiple alternatives, so this wasn't a surprise bid from Wabash National.
Now what
Shares are already trading very close to the buyout price, giving very little upside to holding shares beyond today. After an extensive evaluation of the company's options, I think the likelihood of a new buyer, or an increased offer, is pretty low. The bump in shares is a nice profit for investors today, and it's not worth risking if the deal falls through for some reason.
