In a strategic move set to redefine its trajectory, L.S. Starrett Co. announced today its definitive merger agreement with MiddleGround Capital in a transformative go-private transaction, sending ripples of excitement through the market and sparking a significant surge in the company’s stock value.
At the time of this publication, L S Starrett Co Inc stock (SCX) has witnessed a surge.
L S Starrett Co
Current Price: $15.76
Change : +5.84
Change (%): (58.82%)
Volume: 1.1M
Source: Tomorrow Events Market Data
Under the terms of the agreement, MiddleGround Capital, an affiliate of the esteemed private equity firm, will acquire L.S. Starrett Co. in an all-cash deal valued at $16.19 per share. This offer represents an impressive 63% premium to the closing stock price on March 8, 2024, reaffirming the market’s recognition of Starrett’s inherent value and growth potential.
Douglas A. Starrett, Chairman of the Board of Directors, Chief Executive Officer, and President of L.S. Starrett Co., expressed his satisfaction with the agreement, stating, “We are pleased to reach this agreement with MiddleGround, which provides a meaningful premium cash value to our shareholders.” He further emphasized MiddleGround’s expertise within the manufacturing industry, highlighting their alignment with Starrett’s vision for innovation and service excellence.
Echoing this sentiment, John Stewart, Managing Partner of MiddleGround, conveyed the firm’s excitement about partnering with Starrett, a brand they have long admired. Stewart emphasized MiddleGround’s commitment to positioning Starrett at the forefront of innovation, advanced manufacturing, and reshoring, leveraging their operational experience and industry knowledge to drive sustainable growth.
Transaction details reveal that MiddleGround intends to finance the acquisition through a combination of cash from MiddleGround Partners III, L.P. and committed financing, ensuring a smooth and expedited transition process. The proposed transaction has already received approval from Starrett’s Board of Directors and is expected to close in mid-2024, pending shareholder approval and other customary closing conditions.
As the deal progresses towards completion, Starrett is poised to emerge as a wholly-owned subsidiary of MiddleGround, with its Class A common stock no longer listed on any public market. With renowned advisory firms Lincoln International LLC and William Blair & Company L.L.C. guiding the transaction, shareholders and stakeholders alike eagerly anticipate the next chapter in Starrett’s journey under private ownership.
The go-private merger agreement between L.S. Starrett Co. and MiddleGround Capital marks a pivotal moment in the company’s history, positioning it for sustained growth and innovation in the dynamic landscape of manufacturing. As the transaction unfolds, all eyes remain fixed on Starrett’s unwavering commitment to excellence and its promising future under the stewardship of MiddleGround Capital.
