From Home Furnishing Business
Apparel Company to Acquire Chromcraft Revington
Under the terms of the agreement signed Wednesday, Sport-Haley will acquire all of the outstanding shares of common stock of Chromcraft for $3.45 million consisting of $2.7 million payable in cash at closing. The $750,000 balance will be payable in cash upon the earlier of 180 days following the closing or the sale or satisfactory mortgage of Chromcraft's plant located in Delphi, Ind.
The total purchase price will equal about $.54 per share. The acquisition is subject to the approval of the stockholders of Chromcraft, financing contingencies and certain other conditions provided in the definitive agreement.
The acquisition is expected to close in the fourth quarter of 2013. A proxy statement will be sent to the stockholders of Chromcraft.
"The continuing economic downturn in the furniture industry has taken a toll on many manufacturers," said Ronald Butler, chairman and CEO of Chromcraft. "We see this merger as a positive step forward for all Chromcraft stakeholders."
Samuel Kidston, chairman and CEO of Sport-Haley Holdings said the acquisition marks a new chapter for both companies.
"Existing Chromcraft shareholders receive immediate value for their holdings," Kidston said. "While the combination of the two companies will bring increased access to capital, strong operating discipline and an unwavering focus on delivering value to our employees, customers, vendor partners and the shareholders of Sport-Haley Holdings."
Organized in 2011, Sport-Haley Holdings, Inc. is a holding company that owns Sport-Haley, a women's golf apparel company.