HICKSVILLE, N.Y. — RFE Investment Partners has decided to join in the recapitalization of bag producer Uniflex Inc.
RFE, a private equity firm in New Canaan, Conn., has formed Newco, which will merge with Uniflex.
Hicksville-based Uniflex's President and Chief Operating Officer Robert Semel said the recapitalization should help the company make acquisitions and grow. He estimates the value of the transaction at nearly $40 million.
Last fall, private investment bank Carl Marks & Co. agreed to acquire majority control of Uniflex for $7.57 a share. Newco will pay $7.57 per share of Uniflex and an average of $4.09 per stock option. Newco can buy 158,700 shares and stock options, which would give it about 20 percent ownership.
Semel said by telephone he expects to complete the deal before July 31. The new Uniflex will continue to be majority owned by Carl Marks & Co., its affiliates, and Uniflex management and employees.
Uniflex has plants in Westbury, N.Y., and Albuquerque. It converts polyethylene film into retail bags, medical products and tamper-evident envelopes.