H.I.G. Capital to Acquire MISTRAS Group for $866m

H.I.G. Capital has agreed to acquire MISTRAS Group in an all-cash transaction valuing the US industrial services company at approximately 866 million US dollars, including outstanding debt.

Under the agreement, MISTRAS shareholders will receive 20.35 US dollars for each common share. The transaction, which has been unanimously approved by MISTRAS’ board, is expected to close in late 2026 or early 2027, subject to shareholder and regulatory approvals.

The deal will take MISTRAS private and end its listing on the New York Stock Exchange. Affiliates of H.I.G. have entered into voting and support agreements covering about 31% of MISTRAS’ outstanding common shares.

MISTRAS provides technology-enabled industrial asset integrity and laboratory testing services. The company has been implementing its Vision2030 programme, which includes expansion into new markets, improvements in customer service and operational efficiency, as well as investment in its business.

The offer price represents an eight percent premium to MISTRAS’ 30-day volume-weighted average share price and a 13% premium to its 90-day average through September 17. The company’s share price had risen 61% since the end of 2025.

MISTRAS Executive Chairman Manuel N. Stamatakis said the agreement would provide shareholders with immediate cash value while giving the company an opportunity to continue investing with H.I.G.

CEO Natalia Shuman said the transaction would support the company’s efforts to improve customer service, enter high-growth markets and pursue further investment.

H.I.G., which has 75 billion US dollars of capital under management, said its experience in industrial services would support MISTRAS and its workforce following the acquisition.

The agreement includes a 40-day go-shop period ending October 27, during which MISTRAS can solicit and consider alternative acquisition proposals. The company may terminate the agreement to accept a superior proposal, subject to the terms of the deal, including a termination fee.

Baird is advising MISTRAS financially, while Morgan Lewis & Bockius and Troutman Pepper Locke are providing legal advice. Texas Capital Securities and Kirkland & Ellis are advising H.I.G.

Following completion of the transaction, MISTRAS’ common stock will no longer be listed on the New York Stock Exchange.

Source: FSX Business News