Carlyle Group To Buy Sequa Corp. For 54% Premium

Sequa Corporation, diversified industrial maker of auto and aircraft parts, agreed to sell itself to private equity firm Carlyle Group for $175 a share, a whopping 54% premium to Friday's closing price of $113.52. Including debt assumption, the deal is valued at a total of $2.7 billion. Under the terms of the buyout, Sequa may continue to solicit acquisition proposals through Aug. 23. Sequa is also engaged in the manufacture of metal coating, specialty chemical and industrial machinery products. According to Carlyle, Sequa CEO Martin Weinstein and senior management will remain with Sequa. Sequa's board has already unanimously approved the deal and is recommending shareholders do the same. Sequa Chairman Gail A. Binderman on the deal: "Carlyle has a demonstrated track record of investing in and improving the companies it acquires and has great financial and operational expertise. Our Board unanimously supports becoming a part of the Carlyle family." The buyout is expected to close during the fourth quarter.

Sources: Press Release, MarketWatch, Reuters, TheStreet.com, AP
Commentary: Barron's Mid-2007 Analyst Roundtable
Stocks/ETFs to watch: Sequa Corporation (SQA.A)

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