The L.S. Starrett Company (NYSE:SCX) shares are rocketing after it penned a definitive merger deal in a go-private transaction with an affiliate of MiddleGround Capital in an all-cash transaction for $16.19 per share. 

The acquisition price represents a 63% premium to the closing stock price on March 8, 2024, the last trading day before announcing the transaction.

Douglas A. Starrett, Chairman of the Board of Directors, Chief Executive Officer and President, said, “Following comprehensive outreach to potential parties, our Board of Directors determined that MiddleGround is the right partner for Starrett because of its deep knowledge within the manufacturing industry.” 

“As a private company, the Company will have additional financial and operational flexibility to continue providing industry-leading service and products to our customers across our markets and maintaining Starrett’s proud tradition among its employees, communities and other stakeholders.”

The transaction is expected to close in mid-2024, subject to approval by Starrett’s shareholders and other customary closing conditions.

After the deal is closed, Starrett will become a wholly owned subsidiary of MiddleGround and will no longer be listed in any public market.

Price Action: SCX shares are up 59.2% at $15.79 premarket on the last check Monday.