Gorman-Rupp erases some gains after $525 mln deal

The Gorman-Rupp

27/04/2022 14:46

** Water pump maker Gorman-Rupp Company's  GRC.N  shares
pare premarket gains, last up 5% at $34.68
    ** Stock jumped as much as 21% to $40 in premarket trade
    ** Co announces deal to buy Fill-Rite and Sotera, a company
that makes fuel and chemical transfer pumps, for $525 mln
 urn:newsml:reuters.com:*:nBw3bygMba
    ** Deal will be financed through cash and debt, GRC says
    ** Adds that it expects to close transaction in Q2
    ** Through deal, GRC expects to expand product portfolio and
gain a bigger slice of the agriculture and construction markets
    ** Co also flags that Fill-Rite's supply chain in 95%
U.S.-based, minimizing the risk of disruptions
    ** YTD, GRC has lost over a fourth of its market cap
    ** J.P. Morgan Securities is advising GRC on the deal, and
is also providing debt

 (Reporting by Niket Nishant in Bengaluru)
 ((Niket.Nishant@thomsonreuters.com;))