HXL - Why Shares of Hexcel Are Soaring Today
Shares of Hexcel (NYSE: HXL) climbed 10% on Monday morning after the aerospace and defense component manufacturer agreed to merge with Woodward (NASDAQ: WWD). The deal will create a $5 billion sales powerhouse with the wherewithal to weather Boeing's (NYSE: BA) 737 MAX issues and invest in future growth.
The deal, which was announced on Sunday night, calls for Hexcel shareholders to receive 0.625 shares of Woodward common stock for each share held. The deal values Hexcel at about $6.43 billion, or $76.23 per share, based on Woodward's Friday close, and offers Hexcel shareholders a premium of about 4.5% over Friday's closing price.
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