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 (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.
