Michael Baker To Be Acquired By Integrated Mission For $397 Mln.; Stock Surges

(RTTNews) - Engineering and construction service provider Michael Baker Corp. (BKR), Monday agreed to be acquired by Integrated Mission Solutions LLC, a unit of investment firm DC Capital Partners LLC, in a deal valued at about $397 million. Following the news, shares Michael Baker gained 36 percent in morning trade on the New York Stock Exchange.

The deal will see Baker shareholders receive $40.50 in cash for each share of common stock they own - a 37 percent premium to Baker's closing share price on July 26.

The deal is to close late in the third quarter or early in the fourth quarter of 2013, subject to customary closing conditions.

As per the terms, a unit of Integrated Mission Solutions will commence a tender offer to acquire all of the outstanding Michael Baker common shares.

Integrated Mission said the deal will create a company with over $1 billion in revenue, about 5,000 employees, and a platform with global reach.

Michael Baker's complementary capabilities and distinctive North American presence and Integrated Mission's customers in growth areas such as infrastructure and development will enhance ability to execute larger projects.

Integrated Mission has agreed to retain the Baker name, maintain Baker's presence in the Pittsburgh area, and keep the current organization and staff of Baker intact.

Three members of the Michael Baker Board will join the combined company Board, and the headquarters for Michael Baker will remain in Moon Township, Pennsylvania.

In May, Michael Baker reported a first-quarter profit of $5.5 million, up from $1.7 million a year ago. Revenues for the quarter slipped to $144 million from $151.7 million last year.

Michael Baker is currently trading at $40.26, up $10.66 or 36.01%, on a volume of about 1 million shares.