Earl Scheib Inc. has entered into a definitive merger agreement pursuant to be acquired by Kelly Capital, LLC, a San Diego-based private equity fund, for $2 per share in cash in a transaction valued at $8 million.
The acquisition price reflects a 567 percent premium over the last closing price of Earl Scheib’s common stock as quoted on the Pink Sheets today, according to the company.
The Scheib board unanimously approved the merger agreement and recommended its approval by the company’s stockholders. The transaction is expected to close by April 15, subject to the receipt of majority stockholder approval, as well as the satisfaction of other customary closing conditions.
“In March of 2008, we began the formal process of exploring strategic alternatives with the assistance of our financial adviser,” said Scheib President and CEO Christian K. Bement. “It is our firm belief that this transaction provides the best possible alternative for our stockholders, while at the same time preserving the Earl Scheib name and operation.”
Earl Scheib, founded in 1937, is a nationwide operator of 85 automotive paint and collision repair shops located in 77 cities throughout the United States. Through a wholly owned subsidiary, Scheib also manufactures paint coating systems that are used by its paint and collision repair shops and also sold to OEMs and used by architectural construction firms.
