Creation Technologies to Buy IEC for $174M

摘要

IEC Electronics and Creation Technologies have signed a definitive merger agreement under which Creation will acquire all outstanding shares of IEC for $15.35 per share in cash, making the deal worth approximately $174 million. The transaction, which has been unanimously approved by both companies' boards, includes a "go-shop" period during which IEC will actively see alternative acquisition proposals, which the EMS could select over the Creation offer. The transaction is expected to close by early October. Upon completion of the transaction, IEC will become a privately held company, and shares of IEC's common stock will no longer be listed on any public market. The deal represents a fully diluted equity value of about $173.8 million and an aggregate enterprise value of $242.3 million, based on net debt of $68.6 million. Creation will finance the transaction through a committed debt financing package provided by JPMorgan Chase Bank and Citizens Bank. The "go-shop" period is 35 days after signing the merger agreement, ending Sept. 16, 2021.