Mill Road's options activity — selling $25.00 strike calls (above the $20.35 merger price) and $15.00/$17.50 puts — suggests it expects the deal to close at or near $20.35, with limited downside. The 6.1% stake gives Mill Road influence to vote for or against the merger; its continued accumulation signals support. Watch for any go-shop bids before October 27, 2026, and for Mill Road's voting decision at the special meeting.
Price Chart
Executive Summary
Mill Road Capital III filed an amended Schedule 13D disclosing a 6.1% stake (1,938,316 shares) in Mistras Group, acquired for $13.9 million. The filing details open-market purchases and options activity, including the sale of call and put options. This amendment comes as Mistras Group is being acquired by H.I.G. Capital in an all-cash deal valued at ~$866 million enterprise value ($20.35/share), with management soliciting stockholder support. Mill Road's continued accumulation and options positioning suggest it is actively engaging with the merger process, likely supporting the deal or positioning for a higher bid.
Key Financial Metrics
Key Facts
- Mill Road Capital III now beneficially owns 1,938,316 shares of Mistras Group common stock, representing approximately 6.1% of outstanding shares.
- The stake was acquired for $13,897,120 using working capital and margin loan proceeds.
- On 8/12/2026, Mill Road purchased 1,002 shares at $17.0580 per share.
- Mill Road sold call options on 9/16 and 9/17/2026 with a $25.00 strike price expiring 2/19/2027, covering 5,800 shares.
- Mill Road sold put options between 7/20 and 7/29/2026 with strike prices of $15.00 and $17.50, expiring 9/18/2026 and 11/20/2026, covering 258 shares.
- Mistras Group has a definitive agreement to be acquired by H.I.G. Capital for $20.35 per share (~$866 million enterprise value), subject to stockholder approval.
- The merger includes a 40-day go-shop period expiring October 27, 2026, and is expected to close in late 2026 or early 2027.
Financial Impact
Mill Road's stake of 1,938,316 shares at the merger price of $20.35/share implies a value of approximately $39.4 million, representing a potential gain of ~$25.5 million over the $13.9 million cost basis.
Risk Factors
- The merger may fail if stockholders vote against it or a superior bid does not emerge during the go-shop period.
- Regulatory delays or antitrust concerns could push the closing beyond early 2027.
- Mill Road's put options expose it to downside if the stock falls below $15.00-$17.50, though the merger price provides a floor.
Investment Themes
Documents Analyzed
This report is based on 3 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| SC 13D/A Filing (Primary) | 0001193125-26-395732 |
| Document: 0001193125-26-395732-index.html | 0001193125-26-395732 |
| Document: 0001193125-26-395732.txt | 0001193125-26-395732 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 19, 2026 7d ago | Press Release | $21.44 | awaiting T+20 | — | $21.24 (−0.93%) |
Oct 15, 2026 11d ago | PREM14A | $21.46 | awaiting T+20 | — | $21.24 (−1.03%) |
Oct 7, 2026 19d ago | SC 13D/A | $20.70 | awaiting T+20 | — | $21.24 (+2.61%) |
Sep 18, 2026 5w ago | SC 13D/A | $20.99 $21.44 | ▲ +2.14% | ▲ +3.05% | $21.24 (+1.19%) |
Sep 18, 2026 5w ago | DEFA14A | $20.99 $21.44 | ▲ +2.14% | ▲ +3.05% | $21.24 (+1.19%) |
Sep 18, 2026 5w ago | DEFA14A | $20.99 $21.44 | ▲ +2.14% | ▲ +3.05% | $21.24 (+1.19%) |
Sep 18, 2026 5w ago | DEFA14A | $20.99 $21.44 | ▲ +2.14% | ▲ +3.05% | $21.24 (+1.19%) |
Sep 18, 2026 5w ago | DEFA14A | $20.99 $21.44 | ▲ +2.14% | ▲ +3.05% | $21.24 (+1.19%) |
Sep 18, 2026 5w ago | DEFA14A | $20.99 $21.44 | ▲ +2.14% | ▲ +3.05% | $21.24 (+1.19%) |
Sep 18, 2026 5w ago | DEFA14A | $20.99 $21.44 | ▲ +2.14% | ▲ +3.05% | $21.24 (+1.19%) |
US Market Status
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