Presstek, Inc., the leading supplier of digital offset printer solutions for the printing & communications industries (“Presstek”), announced today it had entered into an definitive merger agreement. Under this agreement, MAI Holdings, Inc., which is affiliated with American Industrial Partners Capital Fund IV, L.P., would acquire it.
The agreement and plan of merger have been unanimously approved. Presstek shareholders will receive $0.50 cash per share of Common Stock. This premium is 16.3% higher than the closing share price for Common Stock on August 22, 2012 The agreement will close in the fourth quarter 2012, subject to shareholder approval and other customary closing conditions. AIP obtained permission from Presstek’s largest shareholder, IAT Reinsurance Company, Ltd., and its affiliates to vote for the merger at the special shareholders meeting. This is subject to certain conditions.
Stanley E. Freimuth was Presstek’s President, CEO and Chairman. We are confident that this combination will drive the Company’s growth. This has been difficult in recent years because of the economic downturn. AIP is a familiar name in our industry. Mark Andy, Inc., one of the portfolio companies, is the leading designer of narrow and medium-web flexographic equipment, as well aftermarket products, serving the label, packaging, specialty printing markets. We look forward working with Mark Andy where it makes sense.
AIP is an operationally-focused private equity investment company that focuses on middle market companies. It employs a collaborative approach with managers to help them build and improve their businesses. Richard Hoffman, AIP, commented on the transaction. “Presstek is a very attractive portfolio investment. We look forward to working with Presstek’s management to ensure that the company and its products reach their full potential. The company boasts best-in class technologies, including its 75DI digital offset printer.
GCA Savvian Advisors, LLC has served as financial advisor and McDermott, Will & Emery, LLP has served as legal counsel to Presstek in connection with this transaction. Ropes & Gray, LLP has served as legal counsel to AIP in connection with this transaction.