Tenneco Inc (NYSE:TEN) is trading higher Wednesday after the company announced it will be acquired by Apollo Funds for $20 per share.
The deal is an all-cash transaction with an enterprise valuation of approximately $7.1 billion. The transaction is expected to close in the second half of 2022. Upon completion, Tenneco will become a private company.
"We are pleased to have reached this agreement with Apollo, which we believe will deliver immediate and certain cash value to Tenneco shareholders at a substantial premium," said Dennis Letham, chairman of Tenneco.
"We believe this transaction is the right path forward and achieves our goal of maximizing value for Tenneco shareholders, and will benefit our team members, customers and business partners around the world," Letham added.
Tenneco designs, manufactures and markets automotive products. The company's emissions-control products meet strict air-quality legislation, optimize engine performance, improve fuel economy and acoustically tune engine sound to fit a vehicle's profile.
TEN Price Action: Tenneco has traded as low as $9.51 and as high as $22.74 over a 52-week period.
The stock was up 94.1% at $19.38 at time of publication.
