The Andersons, Inc. (NASDAQ: ANDE)
The Andersons, Inc. (ANDE), a diversified agricultural company yesterday announced that HCHC has made an offer to acquire the company. The offer is stated to be at $37 per share in cash or total purchase price of $1.043 billion plus the assumption of its $402 million debt.
HCHC CEO’s Comments
“We believe the company has been poorly managed and has not been effective in extracting synergies of any significance from the five disparate corporate entities it owns, controls and operates,” Falcone said. “We believe action is necessary to maximize value from these assets.” Bloomberg
ANDE Technical Analysis
ANDE opened trading yesterday at $26.56 which was up from the previous days trading of $26.53. ANDE closed trading yesterday at $25.94 and spiked up after market to $32.88, equivalent to a 27% increase from the closing price. Taking a look at the daily chart we can see the last time ANDE traded above this price level was on May 2nd when it traded at $33.67. Taking a closer look at the daily chart we can see that before the gap up ANDE had been on an overall decline dating back to October 9th of last year when it traded at $38.49. ANDE has a float of 26.13 million shares and traded almost 1.5 times the normal daily trading volume on Tuesday.
The Andersons, Inc., together with its subsidiaries, engages in the grain, ethanol, plant nutrient, railcar leasing, turf and cob products, and retailing businesses in the United States and internationally. It operates through five segments: Grain, Ethanol, Rail, Plant Nutrient, and Retail. The Grain segment operates grain elevators; stores grains; and provides grain marketing, risk management, and corn origination services. The Ethanol segment purchases and sells ethanol; and offers facility operations, risk management, and ethanol and corn oil marketing services to the ethanol plants. The Rail segment leases, sells, and repairs various types of railcars, locomotives, and barges; provides fleet management services to private railcar owners; and invests in short-line railroad, as well as offers metal fabrication services. The Plant Nutrient segment manufactures, distributes, and retails agricultural and related plant nutrients, corncob-based products, and pelleted lime and gypsum products; and crop nutrients, crop protection chemicals, and seed products, as well as provides application and agronomic services to commercial and family farmers. This segment also offers warehousing, packaging, and manufacturing services to nutrient producers and other distributors; and manufactures and distributes nitrogen reagents for air pollution control systems. In addition, this segment produces professional turf care products for golf course and turf care markets; and fertilizer and control products to merchandisers, independent retailers, and other lawn fertilizer manufacturers, as well as provides contract manufacturing of fertilizer and control products. The Retail segment operates The Andersons retail stores; The Andersons Market, a specialty food store; a distribution center; and a lawn and garden equipment sales and service facility. The Andersons, Inc. was founded in 1947 and is headquartered in Maumee, Ohio.” Yahoo Finance