News of Sale Sends Up White Cap Shares

White Cap Industries Inc. shares rose 33% Friday after the Costa Mesa company said it will be acquired for $240 million in cash, or $16.50 a share, by its management and an investment group. White Cap’s stock rose $3.75 to $15.24 in trading of 341,500 shares, almost five times its three-month daily average. White Cap, which sells specialty tools and materials to contractors in the Western U.S., said it will be purchased by management and an affiliate of Leonard Green & Partners LP. The buyout bid is 43% more than the stock’s closing price on Thursday. Chairman and Chief Executive Greg Grosch and some members of management will retain some of their holdings in the surviving corporation, although a substantial amount of their shares will be acquired in the transaction.