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ACP to buy Cyalume
Posted on Wednesday, 09 August 2017 13:42
Private equity firm Arsenal Capital Partners (ACP) has inked an agreement to pick up US chemiluminescent products manufacturer Cyalume Technologies for about USD 45.00 million.
The buyer is offering USD 0.21 per share for the target, representing a 38.7 per cent premium over its close of USD 0.15 on 7th August 2017, the last trading day prior to the announcement.
DLA Piper has been hired to advise the acquiror on the deal, while Greenberg Traurig and Cassel Salpeter & Company are assisting the target.
The deal, which is expected to close in September 2017, is subject to shareholder approval; however, it has been approved by Cyalume’s board of directors.
Following completion, Cyalume will continue to seek additional add-on acquisitions.
No further details of the deal were disclosed.
Florida-headquartered Cyalume does sub-contract manufacturing of components for use in pharmaceutical, medical, commercial and military markets.
The company, which previously traded as Vector Intersect Security Acquisition, is listed on the OTC Bulletin Board under the ticker symbol CYLU and its stocks closed at USD 0.15 yesterday, valuing the group at over USD 3.35 million.
In the three months ended 31st March 2017, Cyalume posted revenue of USD 11.10 million, a 20.1 per cent increase on USD 9.24 million in the corresponding timeframe of 2016.
Net income totalled USD 715,000 in the first quarter of 2017 (Q1 2016: USD 479,000).
This is not ACP’s first acquisition of the year to date; in June the company agreed to buy US thermoformed plastic sheet packaging manufacturer PolyOne Designed Structures and Solutions for around USD 115.00 million.
The firm also sold Texas-headquartered oil and gas group Flowchem to KMG Chemicals for about USD 495.00 million in cash in the same month.
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