Target: Polaris Materials Corporation (TSX:PLS)
- Industry: Basic Materials – Construction Materials
- Acquirer: Unknown US Buyer
- Target: Polaris Materials Corporation
- Size: $301 million
- Consideration: 100% Cash
- Source of Funds: Not Disclosed
- Sell Side Advisors: Canaccord Genuity Corp.
- Buy Side Advisors: Not Disclosed
- Legal Advisors: Fasken Martineau DuMoulin LLP; Osler, Hoskin & Harcourt LLP; Dorsey & Whitney LLP
- Expected Close: Not Disclosed
On September 22nd, 2017, an unknown US company made an offer to acquire Polaris Materials Corporation for $301 million.
The deal will pay $3.40 per Polaris share at an implied EV/EBITDA of 99.6x and an implied P/E multiple of 137.9x.
Polaris Materials Corporation develops and operates construction aggregate properties and projects in western North America. The company was seeking various strategic options, including M&A, “to provide long term benefits to our partners and opportunities for growth in the future, ” said Ken Palko, President and CEO of Polaris.
Back in August of 2017, Polaris received an offer from Vulcan Materials for $247 million. The new buyer is reported to be a major US construction materials company and the new offer is considered superior by Polaris’ Board of Directors. Vulcan will have 5 business days to match the new offer with the right to propose amendments to the terms of the previous offer.
To better understand our M&A write-ups, please refer to the following:
Mergers & Acquisitions
Cash or Stock Consideration for M&A
Accretion/Dilution Part I: EPS, Earnings Yield & All-Stock Transactions
Accretion/Dilution Part II: Math and Breakeven Premiums
Accretion/Dilution Part III: Using Debt for Acquisitions
Accretion/Dilution Part IV: Synergies & Sources of Funds