TMX - Why Terminix Stock Rocketed 30.5% at the Open Today
Shares of pest control giant Terminix Global Holdings (NYSE: TMX) shot higher out of the gate on Dec. 14, rising by as much as 30.5% at one point in early trading. That gain is likely to hold firm, too, because the big news is that Terminix is being acquired. Here's a quick look at the deal.
Before trading opened for the day, Terminix announced that it had agreed to be bought by British competitor Rentokil Initial (OTC: RTOKY) . The deal is valued at $6.7 billion and will be a mix of cash (20%) and stock (80%). Current Terminix shareholders can pick all cash or all stock, but the actual amount of either received will be prorated based on demand. The merger is expected to close in the second half of 2022 and still needs to get all of the normal approvals, including from shareholders and regulators. After the deal is complete, current Terminix shareholders will own 26% of the combined company, with Rentokil shareholders owning the remainder.
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Why Terminix Stock Rocketed 30.5% at the Open Today