Strategic Pushed by Public Pressure
Strategic Distribution will soon shed the costs of public ownership when it sells to Platinum Equity. The two-year decision-making process was explained for shareholders in an SEC filing last month. MDM distills the details in this article.
Competitive pressures, a history of operating losses, limited stock liquidity and trading volume, and the cost of complying with Sarbanes-Oxley all played a part in leading Strategic Distribution to give up the public life and agree to sell to Platinum Equity for $10 a share, or $30 million, last month.
An SEC filing in late January details Strategic's decision to go private. In addition to selling the company, management also considered a liquidation of Strategic's assets.
Several suitors took up ...