Sequa shareholders OK deal with Carlyle Group

By Lisa Kerner

Charlotte, N.C., Sept. 17 - Sequa Corp. stockholders approved the company's merger with affiliates of the Carlyle Group at a special meeting held on Monday.

Under the July 9 merger agreement, Sequa stockholders will receive $175 per share in a transaction valued at $2.7 billion.

Preliminary results show that more than 83.09% of the votes cast were in favor of the deal. The number of shares voted in favor of the transaction represented some 83.12% of the total shares outstanding and entitled to vote at the meeting, a company news release stated.

The merger is expected to close in the fourth quarter of 2007.

"We are pleased that stockholders have voted to approve the transaction with Carlyle, which we feel represents the best possible way to deliver maximum value," Sequa chairman of the board Gail A. Binderman said in the release. "We look forward to completing this transaction as quickly as possible."

Carlyle, a private equity firm, plans to fund the acquisition through a combination of equity contributed by affiliated investment funds along with external debt financing provided by Lehman Brothers, Citigroup and JPMorgan.

Sequa is a New York diversified manufacturing company with seven operating units in aerospace, automotive, metal coating, specialty chemical, industrial machinery and other products.

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