Capital Southwest Venture Corp. Announces Sale of Heelys for Proceeds of $20.96M
Capital Southwest Venture Corporation, a wholly-owned subsidiary of Capital Southwest Corporation (Nasdaq: CSWC), sold its 9,317,310 shares of common stock of Heelys, Inc. ("Heelys") to Sequential Brands Group, Inc. ("Sequential") pursuant to the merger of Heelys into a wholly-owned subsidiary of Sequential (the "Merger"). Pursuant to the Merger, which closed on January 24, 2013, Sequential acquired all of the outstanding shares of common stock of Heelys for $2.25 per share in cash.
The sale of CSVC's 9,317,310 shares of Heelys' common stock generated cash proceeds of $20,963,948 and a capital gain of $20,861,458. In December 2006, CSVC recognized a gain of $31,070,149 when it sold 7,393,750 shares of Heelys during its initial public offering. This brings the total realized gain in Heelys to $51,931,607. Additionally, in December 2008, CSVC received a dividend from Heelys in the amount of $9,317,310.
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