iParty Corp. IPT, a leading party goods retailer with a
strong presence in New England, announced on Friday, March 1, 2013 that it had
entered into a definitive merger agreement under which Party City Holdings
Inc. will acquire iParty in an all cash transaction.
The transaction has an expected enterprise value of approximately $35 Million,
excluding deal expenses, comprised of:
* a total equity value of approximately $29 Million for all of the
outstanding Common Stock and Preferred Stock, as follows:
* acquisition of Preferred Stock for approximately $17 Million; and
* acquisition of Common Stock (inclusive of options, less exercise
prices) for approximately $12 Million.
* assumption of net debt estimated at approximately $6 Million.
Preferred Stockholders will receive the greater of their respective
liquidation values and their Common Stock conversion values and Common
Stockholders will receive $0.45 per share. The purchase price for iParty
Common Stock represents a 200% premium over the closing price of iParty Common
Stock as of February 28, 2013, the day before the announcement of the
transaction.
The transaction, which is currently expected to close during the second
quarter of 2013, is subject to customary closing conditions, including
approval by iParty's shareholders.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in