By Lisa Kerner
Charlotte, N.C., May 3 - MLE Holdings, Inc. an affiliate of Sorenson Capital Partners, LP and Peterson Partners LP, will acquire MITY Enterprises, Inc. for $21.50 per share in cash, a premium of roughly 15% above the 120-trading-day moving average price and higher than MITY's shares have ever traded.
The merger agreement includes a termination fee of $1.45 million, or expenses up to $700,000, payable by MITY to MLE, as well as a termination fee of $815,000 payable by MLE to MITY, according to an 8-K filing with the Securities and Exchange Commission.
MITY expects the transaction to close in the second or third quarter of 2007. Following the completed transaction, MITY's common stock will be delisted and will no longer trade publicly.
The company's board of directors unanimously approved the merger agreement, the merger and related transactions.
Officers and directors of MITY holding approximately 28% of the outstanding shares of common stock agreed to vote their respective shares in favor of the deal.
"We believe MITY has a strong franchise with leading positions in growing market segments, and an experienced management team," managing director of Sorenson Capital Fraser Bullock said in a company news release.
"We look forward to supporting the MITY workforce in its efforts to serve customers and grow long-term business value."
Orem, Utah-based MITY designs and manufactures institutional furniture.
Sorenson Capital and Peterson Partners are private equity firms based in Salt Lake City.
| Acquirer: | MLE Holdings, Inc.
|
| Target: | MITY Enterprises, Inc.
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| Price per share: | $21.50
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| Termination fee: | $1.45 million
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| Announcement date: | May 3
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| Expected closing: | Second or third quarter of 2007
|
| Stock price for target: | Nasdaq: MITY; $19.68 on May 2
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