Shares of outdoor cooking company Weber (NYSE:WEBR) are soaring upwards today after it accepted a $3.7 billion buyout offer from BDT Capital.
The $8.05 per share offer means a 60% premium over the stock’s October 24 closing and upon close, the grill maker will transition into a private company.
BDT already owns a 48.2% stake in the company and its funds are extending a $350 million unsecured loan to Weber. The grill maker plans to use the proceeds to pare down its debt and for working capital needs.
Weber had gone public last year at $15 per share levels but had seen its stock price correct by more than 50% since then.
The deal is anticipated to close in H1 2023 and will send bears running for cover as short interest in the stock currently hovers at more than 30%.
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