European Wax Center Agrees to $330M Buyout at $5.80, Shares Soar 42.6%
European Wax Center shares jumped 42.6% after agreeing to be acquired by General Atlantic in an all-cash deal at $5.80 per share. The $330 million transaction represents a 45% premium to the prior closing price and was unanimously recommended by an independent special committee.
1. Acquisition Deal Details
European Wax Center agreed to be acquired by General Atlantic in an all-cash transaction at $5.80 per share, valuing the company at about $330 million. The purchase price represents a 45% premium to the stock’s closing level before the announcement.
2. Board and Special Committee Approval
An independent special committee of the board conducted a thorough evaluation and unanimously recommended the transaction, which then received full board approval. The committee’s review aimed to secure fair value for shareholders and capped the stock’s near-term trading range at the buyout price.
3. Market and Analyst Reaction
Shares rose 42.6% in the afternoon session following the acquisition news. Truist Securities responded by downgrading the rating from Buy to Hold and lowering its price target to $5.80, aligning its valuation with the takeover offer.