Date: Thu, 18 Dec 1997 07:33:12 GMT Server: Stronghold/1.3.4 Ben-SSL/1.3 Apache/1.1.3 Content-type: text/html Last-modified: Fri, 17 Oct 1997 15:06:38 GMT
CLEVELAND, OH, October 17 -- The Tranzonic Companies (AMEX:INZ) today announced a merger agreement with a subsidiary of Linsalata Capital Partners Fund II, L.P., the result of which will be a cash payment of $29.00 per share to Tranzonic shareholders and ownership of Tranzonic by that subsidiary.The merger, which is contingent on regulatory approval, certain customary conditions and the majority vote of Tranzonic's shareholders, is expected to occur prior to February 28, 1998, the end of Tranzonic's current fiscal year. Tranzonic plans to convene a special meeting of its shareholders to vote on the approval of the merger agreement once proxy materials have been finalized and distributed to shareholders. A group of Tranzonic shareholders representing more than a majority of shares outstanding has agreed to vote in favor of the merger at the special meeting.
Linsalata Capital Partners, based in Cleveland, specializes in acquiring middle market companies and working with management to develop and implement strategies to accelerate growth. The private investment partnership currently controls seven companies located throughout the United States with aggregate revenues in excess of $600 million.
"For some time, Tranzonic has been pursuing strategies to enhance further shareholder value," Robert S. Reitman, Tranzonic chairman, said. "We are very pleased that this latest development results in our shareholders realizing full value on their investment and consider it an added benefit that the transaction involves a prestigious investor group. Not only will this assure Tranzonic remains a Cleveland-based company, but it also will provide great opportunity for our customers, suppliers and employees."
Frank N. Linsalata, president of Linsalata Capital Partners Fund II, L.P., indicated that the proposed merger will represent his firm's largest acquisition to date and will bring the current fund to a nearly fully-invested position. "We are very pleased to be able to partner with a fine management team and acquire a local company that holds such strong positions in its respective markets. We intend to build upon the growth strategies currently in place at Hospital Specialty Company and CCP Industries, Inc.," said Linsalata.
Tranzonic's shares closed trading on the American Stock Exchange on October 16, 1997 at $29-7/ 16 per share.
Earlier this week, Tranzonic concluded the sale of substantially all of the assets of its industrial packaging division to Caraustar Industries, Inc. for approximately $14 million in cash and the assumption of certain liabilities.
The Cleveland-based Tranzonic Companies is focused on serving customers through Hospital Specialty Company, which manufactures and distributes personal hygiene products primarily to institutional customers, and CCP Industries, Inc., which supplies industrial wiping products, cleaning products and safety supplies.