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Bain Capital Partners With Management to Acquire China Fire for $9.00 a Share Totaling $265.5M

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China Fire & Security Group, Inc. (Nasdaq: CFSG) today announced that it has entered into a definitive merger agreement with Amber Parent Limited, an affiliate of funds managed by Bain Capital Partners, LLC , and Amber Mergerco, Inc., a wholly-owned subsidiary of Parent.

Under the terms of the merger agreement, each share of the Company's common stock issued and outstanding immediately prior to the effective time of the merger will be cancelled in exchange for the right to receive $9.00 in cash, except for (i) shares beneficially owned by the Company, any subsidiary of the Company, Parent or Merger Sub, including shares to be contributed to Parent or Merger Sub by certain special purpose companies related to Mr. Weigang Li, the Chairman of the Board, Mr. Brian Lin, the Chief Executive Officer of the Company, and Mr. Weishe Zhang, the Vice President of Strategic Planning of the Company, which will be cancelled without receiving any consideration and (ii) shares held by stockholders who have properly exercised and perfected appraisal rights.

The offer represents a total consideration of approximately $265.5 million, a 44% premium over the Company's closing price on March 4, 2011 and a 38% premium over the Company's 90-trading day volume weighted average price calculated as of May 19, 2011.

 

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