(By Balaseshan) Presstek Inc. (NASDAQ:PRST), a manufacturer of digital-based offset printing products, said it has agreed to be bought by an affiliate of American Industrial Partners for $0.50 per share in cash, a 16.3% premium over PRST's previous closing price.
MAI Holdings Inc., an entity affiliated with private equity firm American Industrial Partners Capital Fund IV L.P., will pay to Presstek's shareholders $0.50 in cash for each share of common stock.
In connection with the transaction, American Industrial Partners has obtained the agreement of Presstek's largest shareholder, IAT Reinsurance Co. Ltd. and its affiliates, which own 24.5% of the outstanding common stock, to vote in favor of the merger at the special shareholders meeting to be called for that purpose, subject to certain conditions.
"We are excited to combine the financial resources of American Industrial Partners with the strong product portfolio of Presstek. We believe that this combination will help to fuel the growth of the company, which has been challenging over the past few years as a result of the worldwide economic downturn," said Stanley Freimuth, Presstek's President and CEO.
The agreement and plan of merger, which has been unanimously approved by the company's Board of Directors, is subject to the approval of shareholders and other customary closing conditions and is expected to close during the fourth quarter of 2012.
American Industrial Partners is an operationally focused private equity investment firm that applies a collaborative approach with management in building and improving middle-market companies.
PRST closed Wednesday's regular session down 5.29% at $0.43. The stock has been trading between $0.36 and $1.50 for the past 52 weeks.