Reddy Ice Holdings, which makes and distributes packaged ice, said Monday it agreed to be acquired by investment company GSO Capital Partners for $1.1 billion.
Reddy Ice shareholders will receive $31.25 per share for each share they hold. The price marks a premium of nearly 10 percent over the company's closing price Friday of $28.52 per share.
The current management team would remain in place, Reddy Ice said.
Under the agreement, Reddy Ice can solicit proposals for other offers for 45 days, ending August 16.
The deal is expected to close in the fourth quarter.
Debt financing for the deal has been committed by Morgan Stanley Senior Funding Inc. Houlihan Lokey Howard & Zukin is the financial adviser to the Reddy Ice and DLA Piper US LLP is its legal counsel. Kirkland & Ellis is acting as legal counsel to GSO.
Separately, Reddy Ice said its earnings would fall short of its 2007 forecast due to abnormally bad weather in the second quarter, particularly in Texas and Oklahoma.
The company now expects earnings between $16.3 million and $20.4 million, or between 74 cents and 93 cents per share, on revenue between $350 million and $360 million.
In April, the company said it expected earnings between 87 cents and $1.06 per share on revenue between $360 million and $370 million.
Analysts polled by Thomson Financial expect a profit of 94 cents on revenue of $365 million.
The forecast doesn't include any costs related to the pending acquisition.