Refrigeration component specialist Mueller Industries and Atlas Holdings to take publicly-owned US manufacturer into private hands in transaction valued at $123 million
Tecumseh Products Company has announced it has entered into a definitive merger agreement under which an affiliate of Mueller Industries and Atlas Holdings will acquire Tecumseh in a transaction valued at approximately $123 million, including the assumption of net debt. The offer price of $5.00 per share in cash reflects a 155 per cent premium based on Tecumseh’s closing price of $1.96 per share on August 4, 2015.
The proposed transaction would bring together Tecumseh, described as ‘an iconic brand with a global footprint and market-leading positions’, with new owners, Mueller Industries and Atlas Holdings, who will contribute market and operational expertise, as well as capital.
Harold Karp, President and Chief Executive Officer of Tecumseh said: “We look forward to working with Mueller Industries and Atlas Holdings to help us achieve continued growth as we provide our customers with innovative, best-in-class products and outstanding service and support.”
Tecumseh said it will remain a standalone business with its headquarters unchanged at the close of the proposed transaction. In addition, Tecumseh will continue to operate its global technology centres and manufacturing facilities in North America, South America, Europe and Asia. Tecumseh will become a privately held company and will be delisted from the NASDAQ Stock Market, strengthening the Company’s ability to focus on growing the business, launching new products and enhancing customer service levels. Tecumseh’s senior management is expected to remain in place post transaction close.
The transaction is expected to be completed in the third quarter of 2015.