Bacardi Offers $138 Million for 42 Below
42 Below, known for its crazy contests and advertising, will likely be bought out by drinks giant Bacardi. Bacardi offered 77 cents a share, a 35% premium to the September 26 closing price of 57 cents, which values the company at $138 million. For shareholders who bought at the IPO three years ago, that means that they can run to the bank with 68% more money than they originally invested. Basically, they just made a huge return.
Bacardi is a privately held company, so you can’t get in on the action. Besides, to truly make money you would’ve had to hold 42 Below shares before the announcement. However, there are rumors of Bacardi going public. If that happens, I bet that they would use the IPO money to buy up even more liquor companies in order to compete against even bigger giants like Diageo.
