Shares of Max & Erma's closed 29.5 percent up on Monday as the company announced it agreed to be acquired by G&R Acquisition Inc in a $10.2 million deal.
Pittsburgh's G&R offered $4 a share, meaning a 37 percent premium to Max & Erma's closing price of $2.92 a share on April 25. The boards of both firms approved the deal and Max& Erma's stockholders and executives who hold a total of 45 percent of the common stock voted in favor of the purchase.
Shares of Max & Erma's closed Monday at $3.78 climbing 86 cents or 29.5 percent in Nasdaq.
In March Max & Erma's Restaurants reported first-quarter losses blaming a difficult sales environment, a slump in the housing market and auto industry and high energy costs in the mid-western economy where the group performs its major movement.
Max & Erma's has been exploring strategic alternatives since last year, such as looking for an equity investor and selling franchisees.
After the acquisition the priority is to remodel 69 company owned restaurants to increase sales, President and chief executive officer for Max & Erma's Rob Lindeman said.
The current management of the company will remain after the transaction.