CHICAGO (Dow Jones News) - Shares of Dravo Corp. jumped nearly 80 percent Tuesday after Carmeuse Lime Inc. agreed to acquire Dravo for $13 a share, or about $192 million.
After completion the deal, expected in the fall, Carmeuse Lime will follow through with an earlier agreement with Lafarge SA to combine their North American lime operations in a joint venture. The venture, announced last month, will be 60 percent-owned by Carmeuse and 40 percent-owned by Lafarge, a French building-materials group with interests in cement and concrete.
The agreement provides for the payment of a $9.5 million topping fee in the event Dravo closes a deal with a third party, Dravo said.
Dravo, based in Pittsburgh, is a producer of lime, with an annual operating capacity of 3.4 million tons. It had revenue of $84.3 million in the six months ended June 30.
Carmeuse Lime, based in Chicago, is a unit of privately held Carmeuse SA of Belgium. The parent, which produces limestone, dolomite and lime, has annual revenue of $500 million.
In trading, shares of Dravo closed up $5.50 to $12.43 3/4 on the New York Stock Exchange.