Mueller Industries to repurchase stock for $427.3M
NEW YORK (AP) — Mueller Industries is buying back approximately 10.4 million of its shares owned by Leucadia National Corp. for about $427.3 million.
The Memphis, Tenn., company, which makes copper, brass, plastic and aluminum components for use in plumbing, refrigeration and ventilation systems, said Monday that it will pay $41 per share. This is a nearly15 percent discount to its Friday closing price of $48.17.
Mueller Industries Inc.'s stock fell 92 cents, just short of 2 percent, to $47.25 in premarket trading Monday.
New York-based conglomerate Leucadia is selling all of the Mueller shares that it owns, which is approximately 27.2 percent of Mueller's currently outstanding stock. Leucadia shares, which closed Friday at $23.57, were not trading premarket.
Mueller said it will pay for the shares with available cash and borrowings under its existing credit line.
The offering is expected to close by Wednesday. Once it is complete, Leucadia's board appointees Ian Cumming and Joseph Steinberg will resign from their posts.