Trinity Industries Inc. (TRN) announced that it has signed a definitive agreement to acquire Quixote Corp. (QUIX) for a consideration of $61 million. Trinity will offer $6.38 per share for the acquisition, which will be completed through a tender offer for Quixote’s common shares.

Shares of Quixote, which develops and manufactures highway products designed to protect and direct motorists, surged nearly 116% after the news to close at $6.37 on Thursday, Dec 31, 2009 on the Nasdaq, while shares of Trinity fell 1.5% to close at $17.44 on the same day on the New York Stock Exchange. Trinity’s offer of $6.38 per share calculates to a premium of 116% to Quixote’s closing price of $2.95 on Wednesday, Dec 30, 2009.

Trinity said that it intends to finance the deal through a healthy cash balance, which stood at $545.4 million at the end of September 2009. The company anticipates that the acquisition, which is expected to be complete by the first quarter of 2010, will expand its presence in international markets in the highway products business by leveraging Quixote’s existing customer relationships.

Trinity also stated that once the integration is complete it will offer its domestic and international customers a broad range of highway products. Moreover, the combined research and development facilities are expected to result in further advancement of Trinity’s highway products, which contributed 13% to the company’s revenues during the third quarter of 2009.

Trinity is a multi-industry company offering products and services to the industrial, energy, transportation, and construction sectors. The company makes railcars and railcar parts, inland barges, concrete and aggregates, asphalt, highway products, beams and girders used in highway construction, tank containers, a variety of steel parts, and structural wind towers.

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