Tecumseh Products Co. to be Acquired by Affiliate of Mueller Industries and Atlas Holdings
Tecumseh will remain a standalone business
ANN ARBOR, Mich. — Tecumseh Products Co., a leading manufacturer of refrigeration and air conditioning compressors, announced that it has entered into a definitive merger agreement under which an affiliate of Mueller Industries Inc. and Atlas Holdings LLC will acquire Tecumseh in a transaction valued at approximately $123 million, including the assumption of net debt.
With the proposed transaction, the new owners, Mueller Industries and Atlas Holdings, will contribute market and operational expertise, as well as capital.
“We look forward to working with Mueller Industries and Atlas Holdings to help us achieve continued growth as we provide our customers with innovative, best-in-class products and outstanding service and support,” said Harold Karp, president and chief executive officer of Tecumseh.
Under the terms of the merger agreement, an affiliate of Mueller Industries and Atlas Holdings will commence a tender offer for all the outstanding common stock shares of Tecumseh for $5.00 per share in cash, a 155 percent premium based on Tecumseh’s closing price of $1.96 per share on Aug. 4, 2015. Tecumseh’s board of directors has unanimously approved the merger agreement.
Tecumseh will remain a standalone business with its headquarters unchanged at the close of the proposed transaction. In addition, Tecumseh will continue to operate its global technology centers and manufacturing facilities in North America, South America, Europe, and Asia. Tecumseh will become a privately held company and will be delisted from the NASDAQ Stock Market, which the company said will strengthen its ability to focus on growing the business, launching new products, and enhancing customer service levels. Tecumseh’s senior management is expected to remain in place post-transaction close.
The acquisition is subject to customary closing conditions. It is expected to be completed in the third quarter of 2015.
For more information about Tecumseh Products Company, visit www.tecumseh.com.
For more information about Mueller Industries, visit www.muellerindustries.com.
For more information about Atlas Holdings, visit www.atlasholdingsllc.com.
Publication date: 8/6/2015