Blount International has entered into an agreement to be acquired by affiliates of American Securities LLC and P2 Capital Partners LLC in an all-cash transaction valued at about $855 million, including the assumption of debt. Blount is a global manufacturer and marketer of replacement parts, equipment and accessories in three market segments: Forestry, Lawn and Garden; Concrete Cutting and Finishing; and Farm, Ranch and Agriculture.
Best known to the rental industry for its ICS chain saws, Blount also markets its products under the Oregon, Carlton, Woods, TISCO, SpeeCo and Pentruder brands.
The merger agreement includes a 50-day “go-shop” period, which runs through January 28 and is designed to maximize value for Blount shareholders. During this period, the Special Committee, with the assistance of its and the company’s financial and legal advisors, will actively solicit alternative proposals to acquire Blount. There is no guarantee that this process will result in a superior proposal.
“The proposed transaction will deliver immediate value to Blount’s shareholders and we expect it will also provide us with additional flexibility to execute our strategic plan as we continue to navigate the macroeconomic challenges facing our industry,” said Josh Collins, Blount’s chairman and CEO. “American Securities and P2 Capital Partners each have excellent track records of investing in outstanding businesses for the long term.”
“This transaction will enable us to partner with Blount’s proven management team and talented employees to help drive the next wave of product innovation and leadership that has defined Blount for nearly 70 years,” said Josh Paulson, Partner at P2 Capital Partners. “We are committed long-term investors, having been a Blount shareholder for several years, and look forward to working closely with Blount as a private company to help it take full advantage of the opportunities that lie ahead.”
The proposed transaction is expected to close in the first half of 2016, subject to approval by Blount’s shareholders and customary regulatory approvals.