Illinois Tool to acquire Quipp Inc.

Illinois Tool Works Inc., the maker of Duo-Fast nail guns and Wilsonart countertops, agreed to acquire newspaper handling company Quipp Inc. in a transaction valued at as much as $8.35 million.

Quipp shares climbed the most in more than 21 years.

Illinois Tool Works, based in Glenview, will pay $4.30 to $5.65 a share in cash, with the final price to be adjusted to include Quipp's cash and debt by the deal's completion, Miami-based Quipp said in a statement today.

Based on Quipp's 1.48 million shares outstanding as of Nov. 5, the transaction would be valued at $6.35 million to $8.35 million.

The offer is as much as 88 percent higher than Quipp's $3 closing price March 17, the last time it was traded on the Nasdaq Stock Market.

Quipp makes computerized systems to move newspapers from printing presses to delivery trucks. The company's board has approved the purchase and expects the acquisition will be completed by early summer.

Quipp jumped $1.75, or 58 percent, to $4.75 at 4 p.m. in Nasdaq composite trading, the biggest gain since the company began trading Aug. 19, 1986.

Illinois Tool fell 45 cents to $48.33 on the New York Stock Exchange. The stock has lost 7.1 percent in the past 12 months.