The Pritzker Organization LLC is buying logistics provider TMS International Corp. (NYSE: TMS) for $1 billion in cash.
Under the terms of the deal, Pritzker will pay $17.50 per TMS share. The purchase price also includes refinanced third-party debt. TMS’ stock closed at $15.57 on Aug. 23, the last day of trading before the deal was announced. The stock was trading at $17.37 on Aug. 26, after the transaction was announced.
TMS, headquartered in Glassport, Pa., provides outsourced industrial services, including logistics and procurement, to steel mills in North America. The transaction is expected to close in the fourth quarter.
Chicago-based Pritzker is the merchant bank for the interests of some members of the Pritzker family, developed from the Pritzker & Pritzker law firm. The company has developed Hyatt Hotels, Conwood Tobacco and Triton Containers.
Goldman Sachs Group Inc. (NYSE: GS) and JPMorgan Chase & Co. (NYSE: JPM) are advising Pritzker on the deal and will provide debt financing for the takeover. Latham & Watkins LLP is Pritzkers’ legal counsel.
TMS tapped Bank of America Corp. (NYSE: BAC) and Kaye Scholer LLP for financial and legal advice, respectively.