Farrel Corp. executives backed by a private equity group will buy the Ansonia, Conn.-based maker of extruders and mixers.
Farrel will move from being a publicly held company with stock traded over the counter, to a private company with the deal, which is expected to close in the first quarter of 2007.
Farrel is not releasing many details. According to a news release, members of Farrel's current management team will own about 30 percent of the firm. But Chief Financial Officer Paul Zepp declined to identify management-owners or say how many people are in the management group.
Zepp also said Farrel is not naming the private equity firm involved with funding the deal. More details will be included in a proxy statement that Farrel will send to stockholders in the next two to four weeks, Zepp said. Shareholders must approve the deal.
Farrel serves the plastics and rubber industries. The company generated 2005 sales of $66.6 million and reported profit of $1.37 million. For the first six months of 2006, ended July 2, Farrel reported $24.5 million in sales. Sales are split evenly between new equipment and aftermarket business.
The firm makes mixers, single- and twin-screw extruders, compounding machinery, pelletizers, gear pumps and mills. It employs 270 in Ansonia; Rochdale, England; and Barcelona, Spain. It closed a facility in Deer Park, Texas, in January 2006.
Farrel used to be traded over the counter on the Nasdaq stock exchange. But in late 2003, Farrel officials asked the Securities and Exchange Commission to suspend trading of its shares on the OTC bulletin board and its common stock then was traded through Pink Sheets.
In a Dec. 18 announcement, Farrel said the private investor group agreed to buy all issued and outstanding stock for $2.75 per share.