Mark Andy owner AIP completes Presstek acquisition
Friday, November 2, 2012
American Industrial Partners (AIP), the private equity owner of narrow and mid-web flexo press maker Mark Andy, has completed its $26m (16.2m) purchase of direct imaging press builder Presstek.
AIP announced its $0.50 a share offer, valuing Presstek at $18.7m, in August. It was quickly hit by a number of shareholder class action suits alleging breach of fiduciary duty by Presstek's directors and that the deal undervalued the company's stock.
On 23 October Presstek announced that it had entered a memorandum of understanding to settle all litigation for an undisclosed sum. Presstek, which did not admit any wrongdoing, said it had entered into the settlement to "eliminate the risk, burden and expense of further litigation".
It added that the deal "would resolve all of the claims and permit the merger to be consummated as scheduled without risk of delay and would permit Presstek's stockholders to receive the consideration provided for in the merger agreement".
According to reports the total cost of the acquisition, including assumed debt, is around $26m. Presstek has been searching for a buyer for more than a year after making losses totalling $73m between 2009 and 2011.
Neither AIP nor Presstek have given any indication yet as to what the plans are for the business post-acquisition or what benefits might be realised from any synergies between the DI press manufacturer and Mark Andy.
In a statement announcing the completion of the deal, Presstek president and chief executive Stan Freimuth said: "I look forward to continuing to focus the company on its key growth strategies of going up market and expanding into new markets with AIP’s backing. I am confident that this transaction will be beneficial to Presstek and its customers."Tweet