Reddy Ice Holdings agrees
to be acquired by GSO
Jul 2, 2007 6:58 PM
Reddy Ice Holdings Inc, a producer and distributor of packaged ice, has entered into a definitive merger agreement to be acquired by certain funds managed by GSO Capital Partners LP. The transaction has a total value of about $1.1 billion.
Under terms of the merger agreement, Reddy Ice stockholders will receive $31.25 per share in cash for each common share of the firmís stock they hold. This represents a premium of around 9.6% over the closing share price of $28.52 on June 29.
Under the merger agreement, the company may solicit proposals for alternative transactions from third parties for a 45-day period ending Aug 16, 2007. There can be no assurances that this will result in an alternative transaction.
This merger is subject to approval of a majority of shareholders of Reddy Iceís common stock, as well as customary closing conditions. The transaction is expected to close in fourth quarter 2007.
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