Presstek announced an agreement under which it would be acquired by MAI Holdings, Inc., a division of American Industrial Partners. Presstek is a leading supplier of digital offset printing solutions. Under the terms of the agreement, Presstek’s shareholders will receive $0.50 in cash for each share of Common Stock, which is a 16.3% premium over the closing price on August 22. The terms have been unanimously approved by the Board.
Stanley E. Freimuth, Presstek’s Chairman, President and CEO, said, “We are excited to combine the financial resources of AIP 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. AIP is no stranger to our industry. One of its portfolio companies, Mark Andy, Inc., is the world’s leading designer of narrow and mid-web flexographic equipment and aftermarket products serving the label, packaging and specialty printing markets. We look forward to working with Mark Andy in areas where it makes sense for both companies.”
AIP has obtained the agreement of Presstek’s largest shareholder, IAT Reinsurance Company, 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.
Richard Hoffman of AIP said, “Presstek represents a very attractive portfolio investment for AIP. The company has best-in-class technologies, headlined by its highly efficient and versatile 75DI digital offset printing press, and we look forward to partnering with Presstek’s management team to help the company and its product portfolio achieve their full potential.”
American Industrial Partners is an operationally oriented middle-market private equity firm that makes control investments in North American-based industrial businesses serving domestic and global markets. The firm has been active in private equity since 1989 and is currently managing more than $1.1 billion in equity capital.
Presstek, a supplier of digital offset printing solutions to the printing and communications industries, bridges the gap between toner and conventional offset printing, enabling printers to cost effectively meet increasing customer demand for high quality, short-run color printing with a fast turnaround time while providing improved profit margins. The portfolio ranges from 2-8 page systems, many of which are fully automated. For more information visit www.presstek.com
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