Fitness equipment maker Cybex International Inc. (CYBI: Quote) said Wednesday that it has agreed to be taken private by its largest shareholder UM Holdings Ltd. for $2.55 per share in cash. Shareholders of UM Holdings include Cybex chairman and CEO John Aglialoro and director Joan Carter.
The merger price reflects a 89 percent premium over Cybex's closing stock price of $1.35 per share on Tuesday, October 16. The transaction will be effectuated by means of a merger of a newly-formed, wholly-owned subsidiary of UM into Cybex pursuant to an agreement and plan of merger.
Following the merger, Medway, Massachusetts-based Cybex will be solely owned by UM, Aglialoro and Carter, who together own about 49.5 percent of the company's common stock. Shares of Cybex will not trade on any stock market on consummation of the merger.
Cybex's board of directors has approved the deal and determined that the merger is in the best interests of the company's shareholders.
The company expects to seek approval of the merger at a special shareholders meeting to be held during the first quarter of 2013, and expects the transaction will close shortly thereafter.
UM Holdings, Aglialoro and Carter have informed Cybex that they are not interested in selling their stake in the company or considering any strategic transaction involving the company, other than the merger. They also have advised the company that they intend to vote their shares in favor of the merger.
CYBI closed Tuesday's trading at $1.35, up $0.02 on a volume of 2,900 shares.
by RTT Staff Writer
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