NEW YORK, August 4, 2015 /PRNewswire/ --
ACI Association has initiated research coverage on Magnetek,
Inc. (NASDAQ: MAG). Select highlights from the internally released
reports are being made available to the general public (included
below), with access to the entirety of the research available to
new members.
Today, membership is open to readers on a complementary basis at
the following URL: http://www.aciassociation.com/?c=MAG
Highlights from our MAG Report include:
- Definitive Agreement- On July 27, 2015, Magnetek, Inc. reported that it
has entered into a definitive agreement with Columbus McKinnon
Corporation, a leading designer, manufacturer and marketer of
material handling products. As per the agreement, Magnetek has
agreed to be acquired by Columbus
McKinnon for $50 per share for
a total value of $188.9 million.
Following the announcement, shares of Magnetek jumped 53.55% to end
the session at $49.52.
- Synergies from the Transaction -The
transaction, which will be funded through a combination of cash and
debt, combines complementary strengths of the both companies to
create more competitive and comprehensive material handling
solutions for customers. Cost synergies are anticipated to be at
least $5 million in the first full
year after the acquisition. The acquisition is expected to be
approximately $0.40 per share
accretive to earnings in the first full fiscal year of combined
operations, excluding purchase accounting adjustments. Columbus McKinnon projects its one-time costs
related to the transaction to be between $7.5 million to $8.5 million.
- Tender Offer - The Company informed that the agreement
has been approved unanimously by the Boards of Directors of both
companies and Magnetek's Board of Directors has unanimously
recommended that its shareholders tender into the offer, which is
expected to commence on or before August 5,
2015, by a wholly-owned subsidiary of Columbus McKinnon. Further, the Company stated
that all of the members of Magnetek's Board of Directors and
executive officers, together with Fundamental Global Investors,
LLC, have entered into agreement to tender the shares beneficially
owned by them into the offer. The Company expects the transaction
to close within 90 days.
- Management Views on the Deal - Commenting on the
transaction, Peter M. McCormick,
Magnetek's President and CEO, said, "Our technology and products
are a perfect complement for Columbus
McKinnon's products and this compelling combination provides
a platform to accelerate growth for both Magnetek and Columbus McKinnon. Our companies have a strong
commitment to quality and service and have excellent reputations in
the markets we serve with very similar corporate cultures.
Importantly, our strong and dedicated team will contribute to what
I believe is a formula for success."
To find out how this influences our rating on Magnetek, Inc.
read the full report in its entirety here:
http://www.aciassociation.com/?c=MAG
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