Costa Group’s shares soar by as much as 7.9% to A$3.130, marking their highest level since August 23.

This makes Costa Group (ASX:CGC) the highest gainer on the S&P/ASX 200 index.

Currently, the stock is up 6.7% which would result in its best day since July 4 if the gains hold.

The horticulture company revealed that it has entered an agreement to be acquired by a consortium led by US private equity firm Paine Schwartz.

This deal values the company at A$1.50 billion.

As per the agreement, shareholders of Costa Group (ASX:CGC) would receive A$3.20 for each share that Paine Schwartz doesn’t already own, representing a 10.3% premium to the company’s last closure.

Over 5.3 million shares have changed hands, which is 2.8 times the 30-day average volume of 1.9 million shares.

This year, the stock had risen 5.5% till the last closure, in contrast to a 0.4% increase in the S&P/ASX 200 index.

Costa Group is a leading horticulture company specializing in the farming, packing and marketing of fresh produce.