Key Highlights

● Ultralife more than doubled after agreeing to be acquired.

● Wendy's soared on a reported take-private proposal.

● LCI Industries jumped on a competing cash offer.

● The Russell 2000 outpaced the S&P 500's modest gain.

Deal news set small-cap stocks alight, as Ultralife more than doubled after agreeing to be acquired, Wendy's soared on a reported take-private proposal, and LCI Industries jumped on a non-binding cash offer. The three moves came on a day when the small-cap Russell 2000 index rose, outpacing the S&P 500's modest gain.

Ultralife, which makes batteries and communications systems used largely in defense and industrial applications, was the day's standout, as battery maker EnerSys agreed to acquire the company for $16.00 a share in cash through a tender offer.

Wendy's and Trian

Wendy's soared after a report that Trian Fund Management, led by Nelson Peltz, submitted a non-binding proposal to take the burger chain private at $7.35 a share in cash, valuing it at about $1.4 billion, with Trian long a major Wendy's shareholder.

The bid arrives after six straight quarters of same-store sales declines at the chain, and the shares traded below the proposed price, a gap that often reflects uncertainty over whether a non-binding deal will be completed.

LCI's Surprise Suitor

LCI Industries, a supplier of components for recreational vehicles, jumped after a private equity firm made a non-binding offer of $101 a share in cash, which complicates an existing all-stock merger agreement that LCI's board still backs.

Smaller companies can make attractive targets for private equity firms and corporate buyers, particularly when their shares have lagged, and a buyer can pay a premium to the market price while still seeing long-term value in the business.