Holographic and specialty coated film manufacturer CFC International Inc. announced Jan. 9 it has entered into a merger agreement with private equity firm Quad-C Management Inc. that will take CFC private.
CFC Chief Financial Officer Dennis Lakomy said the cost of being a small public company is growing and the deal will present cost savings, especially from the public filings, when the company goes private.
Under the plan, an affiliate of Charlottesville, Va.-based Quad-C will acquire all outstanding common stock of Chicago Heights, Ill.-based CFC for $16.75 per share, a premium of about 18 percent to the average trading price over the five days prior to the announcement.
CFC directors unanimously approved the merger and Chairman Roger Hruby, the company's major stockholder, agreed in a written consent.
The merger still has a few conditions to satisfy, but is expected to close in the first quarter of 2006.
Hruby, 70, will retire, but the rest of the management will remain in place and take a small financial stake in the company, Lakomy said.
In the quarter ended Sept. 30, CFC International reported a 6.5 percent increase in sales to $23.1 million. CFC does holographic packaging and authentication seals, furniture and building products, pharmaceutical products, transaction cards and intaglio printing.
CFC has manufacturing sites in Chicago Heights and Countryside, Ill., and Goppingen, Germany. Lincoln Partners LLC advised CFC on the transaction.