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Arts and crafts store A.C. Moore Arts & Crafts Inc. on Tuesday agreed to be acquired by arts and crafts distributor Sbar's Inc. for about $40.8 million.
Sbar's said it will pay $1.60 per share for the company, which had about 25.5 million shares outstanding as of July 2, according to an SEC filing on Aug. 3. The price is a 68 percent premium to A.C. Moore's closing price Monday of 95 cents.
Shares rose 59 cents, or 62.1 percent, to $1.50 on the news. The stock has shed more than half its value since hitting a 52-week high of $3.56 in late March.
The move comes after A.C. Moore formed a committee to review strategic alternatives in January. The company runs 134 stores in the East and an online store.
"After conducting a thorough review of alternatives, the special committee and the board of directors unanimously concluded that this transaction with Sbar's is in the best interest of our key stakeholders," Chairman Michael J. Joyce said.
The company has struggled as consumers continue to cut back on non-essentials, a habit that has stuck with them since the recession. The Berlin, N.J., company has reported quarterly losses for years. Its last positive quarter was the fourth quarter of 2007.