NEW YORK, August 4, 2015 /PRNewswire/ --
ACI Association has initiated research coverage on Magnetek, Inc. (NASDAQ: MAG). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.
Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/?c=MAG
Highlights from our MAG Report include:
- Definitive Agreement- On July 27, 2015, Magnetek, Inc. reported that it has entered into a definitive agreement with Columbus McKinnon Corporation, a leading designer, manufacturer and marketer of material handling products. As per the agreement, Magnetek has agreed to be acquired by Columbus McKinnon for $50 per share for a total value of $188.9 million. Following the announcement, shares of Magnetek jumped 53.55% to end the session at $49.52.
- Synergies from the Transaction -The transaction, which will be funded through a combination of cash and debt, combines complementary strengths of the both companies to create more competitive and comprehensive material handling solutions for customers. Cost synergies are anticipated to be at least $5 million in the first full year after the acquisition. The acquisition is expected to be approximately $0.40 per share accretive to earnings in the first full fiscal year of combined operations, excluding purchase accounting adjustments. Columbus McKinnon projects its one-time costs related to the transaction to be between $7.5 million to $8.5 million.
- Tender Offer - The Company informed that the agreement has been approved unanimously by the Boards of Directors of both companies and Magnetek's Board of Directors has unanimously recommended that its shareholders tender into the offer, which is expected to commence on or before August 5, 2015, by a wholly-owned subsidiary of Columbus McKinnon. Further, the Company stated that all of the members of Magnetek's Board of Directors 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 Company expects the transaction to close within 90 days.
- Management Views on the Deal - Commenting on the transaction, Peter M. McCormick, Magnetek's President and CEO, said, "Our technology and products are a perfect complement for Columbus McKinnon's products and this compelling combination provides a platform to accelerate growth for both Magnetek and Columbus McKinnon. Our companies have a strong commitment to quality and service and have excellent reputations in the markets we serve with very similar corporate cultures. Importantly, our strong and dedicated team will contribute to what I believe is a formula for success."
To find out how this influences our rating on Magnetek, Inc. read the full report in its entirety here: http://www.aciassociation.com/?c=MAG
About ACI Association:
Active Charter Investors Association ("ACI Association") produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. ACI Association has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
ACI Association has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer"). Rohit Tuli, a CFA® charter holder (the "CFA®"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on sound investment judgment and publicly available information which is believed to be reliable. The Reviewer and the CFA® have not performed any independent investigations or forensic audits to validate the information herein. Unless otherwise noted, any content outside of this document has no association with the Author, the Reviewer, or the CFA® (collectively referred to as the "Production Team") in any way. The Production Team is compensated on a fixed monthly basis and do not hold any positions of interest in any of the securities mentioned herein.
ACI Association, the Author, the Reviewer and the CFA® (collectively referred to as the "Publishers") are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted by the Publishers whatsoever for any direct, indirect or consequential loss arising from the use of this document. The Publishers expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, the Publishers do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither ACI Association nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.aciassociation.com/.
ACI Association is not available to residents of Belarus, Cuba, Canada, Iran, North Korea, Sudan, Syria or Somalia. Do not send email to robottrap (at) aciassociation.com.
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.