BP Buys Renewable Natural Gas Company in $4.1 Billion Deal
Archaea Energy to be acquired for $26 a share in cash
Archaea Energy Inc. LFG -4.90% said Monday it is being bought by BP BP -2.63% PLC for $26 a share in cash, or a total enterprise value of $4.1 billion, including $800 million of net debt.
The cash consideration represents a 38% premium to the renewable natural gas company’s average share price for the 30 days ended Friday, Archaea said.
The companies are targeting closing the acquisition by the end of this year.
Certain existing Archaea shareholders, who collectively own 27% of its outstanding shares, have agreed to vote their shares in favor of the transaction. Closing isn’t subject to any financing condition, Archaea said.
Upon completion of the transaction, Archaea will operate as a subsidiary within BP and become part of the larger global organization, the company said.
Archaea shares were up 50% to $25.31 in premarket trading.