Mergers and acquisitions seem to be in the air this spring, and it looks like Hill International Inc. (NYSE: HIL) is the target of a takeover bid by a private equity firm. Hill received an offer to be acquired by DC Capital Partners. In the letter sent to Hill, the firm proposed an all cash acquisition valued at $5.50 per share, which is a premium of 40.7% from the previous closing price on May 1.
As noted in the letter, DC Capital said that it has been impressed with Hill’s recovery from the Libya liquidity predicament. However, the private equity firm remains concerned with the company’s disproportionate exposure to the Middle East region and equally concerning is its belief that Hill lacks sufficient fiscal discipline to maximize shareholder value. Ultimately the conclusion is that DC Capital does not believe that a public company venue is the best environment to address Hill’s challenges.
DC Capital is a private investment firm headquartered in the nation’s capital. The firm has experience investing in engineering, infrastructure and government related businesses. Also DC Capital owns a controlling interest in Michael Baker, an engineering, consulting and technical professional services and solutions provider with global reach. Michael Baker was formerly a publicly traded New York Stock Exchange listed company that was taken private in 2013. Considering this, DC Capital believes that it will have insight into the opportunities and risks associated with Hill.
Hill International provides program management, project management, construction management, construction claims and other consulting services primarily for the buildings, transportation, environmental, energy and industrial markets worldwide. It operates through two segments, Project Management and Construction Claims.
ALSO READ: Is Berkshire Hathaway Becoming More Private Equity Than Conglomerate?
Thomas Campbell, president of DC Capital, concluded his letter to Hill by saying:
We believe our proposal is both compelling and in the best interest of your shareholders, employees, and all constituents.
Monday afternoon, shares of Hill were up about 26% to $4.93, in a 52-week trading range of $2.83 to $7.00. The stock has a consensus analyst price target of $5.25.
Travel Cards Are Getting Too Good To Ignore (sponsored)
Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.
We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.
It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.
We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.