Reed Sportswear Manufacturing Company Announces Agreement to Be Acquired in multi million dollar All-Cash Transaction
Released on: September 6, 2007, 5:18 pm
Press Release Author: Reed Sportswear Manufacturing Company
Industry: Apparel & Fashion
Press Release Summary: -- RSM Shareholders to Receive 200% premium for shares --
Press Release Body:
Detroit, MI--(PR WIRE)-Reed Sportswear, a global provider of contemporary sportswear, rugged outerwear, motorcycle wear and American classics, today announced that it has entered into a definitive buyout agreement for the Company to be acquired by affiliates of the Silver Family Group, an investment vehicle controlled by President Mark Silver, in a transaction valued at the multi million dollar range.
Under the terms of the agreement, current Reed Sportswear shareholders will receive a cash payout, representing a premium of approximately 200% over the industry's average closing transactions in the last three years. The Company confirmed it was in discussions with current shareholders regarding a possible transaction on January 1, 2007.
Mr. Mark Silver, President and Chairman of the Board of Directors of Reed Sportswear, commented on the transaction, \"Our focus, as a Board, has always been to maximize long term shareholder value. In the last few years Reed Sportswear was able to emerge from the decline in demand for union made goods as a vibrant successful company growing its specialty market share in a highly competitive market. At the Board we evaluated our strategy going forward and while excited with the opportunities we also recognized the challenges of continuing the path as a multi family company operating in a competitive and consolidating market. After careful and thorough analysis, and with the completion of extensive negotiations with the families, the Board of Directors of the Silver Group has decided to endorse this transaction as being in the best interest of the family shareholders. We believe that this transaction recognizes the value of Reed Sportswear's strong market position and innovative products, while providing our shareholders with attractive cash offer. We have high regards for the founder seller group and are confident Reed Sportswear will continue to thrive under its new ownership structure.\"
Netanel Mazor, Vice President and Chief Operating Officer of Reed Sportswear, further said, \"We are excited about the opportunity this acquisition presents for our shareholders, customers, and partners. As a well-backed private company, we believe that RSM will have greater flexibility to focus on its long term strategy to be a leading provider of the leather specialty market. Our customer focus, innovation and responsiveness, for which we are well known today, will be further enhanced. The Silver Group has in-depth knowledge and vast experience in the garment industry and will be a great asset as we continue to grow the Company. I feel that this investment in RSM serves as a testament to our strong market position and products as well as the talent of our people. As we move from a multi family control group to a private company, I remain committed to the Company and its long term growth strategy. I look forward to cooperating with President Mark Silver and the other members of the buyer group to complete the transaction and continue working with RSM management team on moving RSM forward. Our success is driven by the hard work, commitment and dedication of our capable staff around the world and I thank them for their invaluable contribution to RSM.\"
About Reed Sportswear Manufacturing Company Reed Leather delivers innovative contemporary sportswear, rugged outerwear, motorcycle wear and American classics. Reed offers high quality product standards, prompt delivery, large in-stock programs as well as competitive pricing and a helpful sales team to serve over 3500 customers around the world.
Founded in 1950, Reed represents a tradition of excellence in design and manufacturing. The company's constant devotion to new product development, through leather innovations, design trends and new color combinations, keeps Reed Leather at the forefront of the industry. Leather Industries of America has recognized Reed with the coveted "American Designer Award." For More information, please visit www.reedsportswear.com
About Silver Group The Silver Group is a privately held investment group active mainly in debt and equity transactions globally with a focus on special situations in emerging markets. The company is controlled by President Mark Silver who has extensive experience and track record in founding, investing and managing holding companies.
Information set forth in this press release pertaining to third parties has not been independently verified by RSM and is based solely on publicly available information or on information provided to RSM by such third parties for inclusion in this press release. The web sites appearing in this press release are not and will not be included or incorporated by reference in any filing made by RSM.
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