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What: Shares of Mac-Gray (NYSE:TUC) 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.
Fool contributor Jeremy Bowman has no position in any stocks mentioned. The Motley Fool owns shares of Mac-Gray. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.