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Privet ups takeover offer for Hardinge
Posted on Tuesday, 13 February 2018 10:24
An affiliate of private equity firm Privet Fund Management is picking up the remaining 89.5 per cent stake not already owned in material cutting equipment manufacturer Hardinge for USD 245.00 million in cash.
The takeover bid of USD 18.50 per share represents a 7.2 per cent premium over the target's closing price of USD 17.25 on 9th February 2018, the last trading day prior to the announcement.
It is also an improvement on Privet's initial offer, which was made in November 2017 and comprised USD 17.25 in cash per scrip, or around USD 199.71 million in total.
Completion is slated for the second quarter of 2018, subject to customary closing conditions, including approvals from shareholders and the relevant regulatory bodies.
Equity and debt provided by White Oak Global Advisors will be used to fund the board-approved purchase.
Hardinge makes equipment and parts for the use in a range of industries, including aerospace, energy, communications, agriculture, defence, construction, medicine, automotive, and communications.
Established in 1890, the Nasadaq-listed group is headquartered in Elmira, New York and has manufacturing facilities in China, France, Germany, India, Switzerland, Taiwan, the US, and the UK.
It reported net income of USD 2.67 million and total sales of USD 227.75 million for the nine months ending 30th September 2017.
Based in Atlanta, Georgia, Privet was founded in 2007 and, according to its website, it invests in "small cap companies that have public market valuations significantly below our estimate of the private market value of the enterprises".
The deal has a 30 day “go shop” period, during which the target and its financial advisor BMO Capital Markets will attempt to solicit potential interest from other buyers.
Hardinge chairman Christopher DiSantis said this process will provide "a full opportunity to market test the price" of Privet's proposal.
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