Chromcraft Revington Management Looks to Buy Company

April 18, 2013  by in UnCategorized   

By Home Furnishings Business in Case Goods on April 19, 2013

Furniture supplier Chromcraft Revington (NYSE MKT: CRC) is in the midst of negotiations with members of its management team interested in acquiring the company.

The company has entered into a non-binding letter of intent and term sheet with RMMJ LLC, a Delaware limited liability company led by Ronald H. Butler, chairman and CEO.

The documents outline an acquisition such that a subsidiary of RMMJ would be merged with and into the company with Chromcraft becoming a subsidiary of RMMJ.

The letter of intent and term sheet also estimates the company is valued at  $5 million with record stockholders receiving cash in exchange for each common share held based upon a final valuation amount and the number of shares then outstanding. 

Shares held by members and affiliates of RMMJ and shares held under the company's employee stock ownership and savings plan are not expected to be cashed out in connection with the closing of the proposed transaction as RMMJ expects to maintain the plan after closing the deal. The Company and RMMJ are currently in negotiations and have not yet finalized or entered into a definitive agreement regarding a buyout.

Chromcraft also reported that it was notified by the NYSE MKT that the company is in violation of listing requirements of the Securities and Exchange Commission. Chromcraft failed to file its annual report for the year ended Dec. 31 by April 16. The company said it expects to file its report by May 31.

Earlier this month, Chromcraft voluntarily delisted its stock and voluntarily reregistered from reporting requirements of the SEC.