By Lisa Kerner
Charlotte, N.C., May 8 - Florida East Coast Industries, Inc. agreed to be acquired by affiliates of Fortress Investment Group LLC for $62.50 per share plus a special dividend of $21.50 per share in cash paid by the company for a total consideration of $84.00 per share.
The offer price is a 31% premium to the average closing price over the last 60 trading days, and the total transaction is valued at about $3.5 billion including debt.
Florida East Coast's board unanimously approved the merger, which is slated to close in the third quarter of 2007. Following the merger, the company will not be publicly traded.
"Our focus has always been about maximizing shareholder value," chairman, president and chief executive officer Adolfo Henriques said in a company news release.
"The value created by this transaction is a direct result of our employees' dedication, commitment and hard work over many years. We look forward to working together with Fortress to continue to build our businesses."
Morgan Stanley acted as financial adviser to Florida East Coast and provided a fairness opinion to the board. Greenberg Traurig, P.A. acted as legal adviser to the Jacksonville, Fla., real estate company.
| Acquirer: | Fortress Investment Group LLC affiliates
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| Target: | Florida East Coast Industries, Inc.
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| Transaction value: | $3.5 billion
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| Price per share: | $62.50 plus $21.50 per share special dividend
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| Announcement date: | May 8
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| Expected closing: | Third quarter of 2007
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| Stock price for target: | NYSE: FLA; $74.13 on May 7
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