MAG - Magnetek

[alpha231616967560]

Well written article on MAG this morning at seeking alpha. http://seekingalpha.com/article/2694355-magnetek-expect-40-percent-near-term-upside-due-to-likely-new-capital-allocation

 

 

[dcollon]

Thanks for posting the link Alpha.

 

 

[alpha231616967560]

Magnetek published an 'earnings preview' (results out Mar 12th). Things are continuing to look better than expected and the pension obligation continues to shrink: http://investorinfo.magnetek.com/phoenix.zhtml?c=107102&p=irol-newsArticle&ID=2019158

 

Also a new SA article: http://seekingalpha.com/article/2950916-magnetek-big-beat-presages-strong-2015-and-cash-returns

 

Cheers,

Paul

[dcollon]

Columbus McKinnon to acquire Magnetek, Inc. for $50 per share

Monday, July 27, 2015

 

Columbus McKinnon Corporation (CMCO) and Magnetek, Inc. (MAG) announced that they have entered into a definitive agreement for Columbus McKinnon to acquire all of the outstanding shares of Magnetek for $50 per share for a total value of $188.9M.

 

The agreement has been approved unanimously by the boards of Directors of both companies and Magnetek's board has unanimously recommended that its shareholders tender into the offer, which is anticipated to commence on or before 5-Aug-15, by a wholly-owned subsidiary of Columbus McKinnon.

All of the members of Magnetek's board and executive officers, together with Fundamental Global Investors, LLC, have entered into agreement to tender the shares beneficially owned by them into the offer.

The all-cash transaction value of $188.9M will be funded through a combination of cash on hand and debt.

Cost synergies are expected to be at least $5M in the first full year after the acquisition. Excluding purchase accounting adjustments, the acquisition is expected to be approximately $0.40 per share accretive to earnings in the first full fiscal year of combined operations. Columbus McKinnon estimates its one-time costs related to the transaction to be between $7.5M to $8.5M.

 

The transaction is expected to close within 90 days.

 

Moelis & Company LLC was the exclusive financial advisor, DLA Piper and Barclay Damon served as special outside counsel, and L.E.K. Consulting served as market research consultants, to Columbus McKinnon. Goldman, Sachs & Co. was the exclusive financial advisor, and Foley & Lardner LLP was the legal advisor to Magnetek.

 

Conference call:

July 27, 2015 at 9:00 a.m. ET

(201) 493-6780. The listen-only audio webcast can be monitored at www.cmworks.com/investors