RTW Inc. rises to 52-week high on buyout news
Shares of RTW Inc. (Nasdaq: RTWI) have soared to a new 52-week high following news before the opening that the provider of products and services to manage workers’ compensation will be purchased by Rockhill Holding Company for $67.6 million.
Minneapolis-based RTW has entered into a merger agreement in which insurance holding company Rockhill will acquire all outstanding shares of RTW stock for $12.45 per share in cash, the two companies announced this morning. The transaction has been approved by both boards.
“We believe we are putting RTW and its customers in very good hands,” said John Goodwyne, chair of RTW’s board, in a press release. “We are pleased that Rockhill will pay RTW shareholders a price per share that we believe is good value and provides immediate liquidity in a very thinly traded stock.”
After the completion of the deal, expected no later than Dec. 31, 2007, RTW will continue to operate as a separate wholly owned subsidiary of Rockhill.
At 11:30 a.m. ET, RTW’s (RTWI) shares were up $3.85, or 48%, to a new 52-week high of $11.95. The previous 52-week high of $10.30 was reached on Sept. 27.
