Strategic Distribution, Inc., Bristol, PA, has agreed to be bought out by Platinum Equity for $30 million.
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The transaction is expected to be complete by the end of March. The deal stipulates that Strategic Distribution will merge with Project Eagle Holding Corp. and Project Eagle Merger Corp., each a Platinum Equity portfolio company.
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The MRO distributor reported revenues of $136.9 million in 2005 and a net loss of $3.4 million. Its numbers haven’t improved much in fiscal 2006, with the company recording losses in the first and second quarter, and a slight gain of $0.2 million in the third.
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In November, Strategic announced its board of directors had received a letter from the board’s Chairman William R. Berkley, detailing that a firm he controlled, Interlaken Capital, proposed to buy the outstanding equity interests of the company for $8.30 per share in cash. Berkley owns about 22.5% of outstanding common stock.
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The board of directors formed a committee to consider strategic alternatives for the company and solicited parties that had expressed interest in buying the company and also solicited additional potential acquirers. At the conclusion of that process, the committee and its advisors negotiated a merger agreement with Platinum Equity.
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Each member of the board of directors, including Berkley , has agreed to support the merger.
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Platinum Equity also recently bought Textron Fastening Systems for $630 million and PNA Group Inc., a $1.2 billion processor and distributor of steel products.
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SEC Filing by Strategic Distribution: Merger Agreement
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Related Links:
Strategic Distribution Considers Proposal to Go Private
Platinum Equity to Acquire Textron Fastening Systems for $630M
Platinum Equity Agrees to Acquire $1.2B Steel Group
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