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Latest offer for Missouri-based Aegion rises to $995M

The bidding price to buy engineering services company Aegion Corp. has climbed as a second bidder now challenges New Mountain Capital’s purchase offer. New Mountain has since raised its offer from $963 million to $995 million to compete against an undisclosed bid amount from Apollo Globe Management.

New Mountain Capital of New York increased its bid for St. Louis-based Aegion Corp. on Monday, raising its original asking price by $32 million.

Image courtesy of Aegion Corp.

Engineering services company Aegion now faces an asking prices of $995 million from New Mountain, an increase from $963 million just a few weeks ago. The increase arrives following a competing unsolicited bid by Apollo Globe Management Inc. of New York.

Last month Aegion agreed to be taken private in the original deal with New Mountain. Then last week, Apollo made what was describe as a higher bid, though how much higher was not disclosed.

As consideration for the increased purchase offer — $27 a share instead of $26 a share — the break-up fee payable by Aegion in certain circumstances has increased from $30 million to $40 million, and the termination fee has increased from $60 million to $70 million, Aegion reported in a filing with the Securities and Exchange Commission.

The transaction remains subject to Aegion stockholder approval, regulatory approvals and other customary closing conditions and is expected to close in the second quarter of 2021.

Aegion said that it will schedule a special meeting of stockholders to consider and vote on the proposed merger and amended merger agreement as soon as it is able to do so and that it intends to recommend approval.

Upon completion of the transaction, Aegion will become a privately held company and its stock will no longer be listed on any public market.