Strategic Actions Drive Value - Research Report on Magnetek

Aug 04, 2015, 09:15 ET from www.aciassociation.com

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

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