Pomeroy Founder To Buy Back Company11:47 AM EST Thu. May. 21, 2009
Once again, David Pomeroy will be back in charge of Pomeroy IT Solutions.
The Hebron, Ky.-based solution provider has entered into an agreement to be acquired by David Pomeroy's Hebron LLC company for about $5.02 per share, or about $46 million, according to the company.
David Pomeroy founded Pomeroy IT Solutions in 1981 and currently owns about 20 percent of the company's stock. The offer is a 30 percent premium over the May 19 closing price of $3.86 and a 41 percent premium over the average closing price of the last month of $3.55.
Pomeroy IT Solutions was ranked No. 91 on the 2008 VAR500 with $631.6 million in revenue for 2007.
The company's board of directors approved the sale and the deal is expected to close in the third quarter, at which time the company would become private for the first time since 1992. The agreement contains a "go-shop" provision under which a special committee has the right to solicit better acquisition proposals through June 7, but the company does not intend to disclose any offers and a higher offer may not be accepted, according to the company.
"We believe this transaction provides the greatest likelihood for achieving the highest value for the company's stockholders, and that this is also in the best interests of our customers, partners and employees. The added flexibility of being a private company will help us to focus on supporting our customers with the highest levels of service that they have come to expect," said Christopher Froman, Pomeroy's president and CEO, in a statement.
According to the Cincinnati Business Journal, David Pomeroy has tried three times to buy back Pomeroy IT Solutions since 2007. That year, disgruntled shareholders took control of the board, costing him the role of chairman and his son Stephen Pomeroy's job as CEO.
The company's statement did not mention any executive changes that could result from the acquisition.
Earlier this week, Pomeroy reported a $592,000 loss (6 cents per share) on sales of $89.5 million for the first quarter ended April 5. The results compare to a $3.9 million loss (35 cents per share) on $145.2 million in revenue for the year-ago quarter.