Strategic Distribution to Go Private - Modern Distribution Management

Strategic Distribution to Go Private


Strategic Distribution, Inc., Bristol, PA, has agreed to be bought out by Platinum Equity for $30 million.


&nbsp ;


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.


&nbsp ;


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.


&nbsp ;


In November, Strategic announced its board of directors had received a letter from the board's Chairman William R. Berkley, ...

Strategic Distribution, Inc., Bristol, PA, has agreed to be bought out by Platinum Equity for $30 million.


&nbsp ;


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.


&nbsp ;


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.


&nbsp ;


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.


&nbsp ;


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.


&nbsp ;


Each member of the board of directors, including Berkley , has agreed to support the merger.


&nbsp ;


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.


&nbsp ;


SEC Filing by Strategic Distribution: Merger Agreement

&nbsp ;
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



More Breaking News

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.