Omnova's stock soars after buyout deal for 58% premium
Shares of Omnova Solutions Inc. OMN, -3.89% soared 55% to pace all premarket gainers Wednesday, after the specialty chemicals company announced overnight a deal to be acquired by U.K.-based Synthomer PLC SYNT, +0.75% in a deal that values Omnova at $455.2 million. The rally puts Omnova's stock on track to open at the highest level seen during regular-session hours since September 2018. Under terms of the deal, Omnova shareholders will receive $10.15 in cash for each Omnova share they own, representing a 58% premium to Tuesday's closing price of $6.42. The deal is expected to close in late 2019 or early 2020. Separately, Omnova reported fiscal second-quarter earnings and sales that missed FactSet consensus estimates, citing challenging economic conditions and volatile markets. Omnova's stock has dropped 12.4% year to date through Tuesday, while the SPDR Materials Select Sector ETF XLB, -0.10% has climbed 16.6% and the Dow Jones Industrial Average DJIA, +0.26% has advanced 14.8%.