Mackie Announces Sun Capital InvestmentMackie Designs (Woodinville, Wash.) announced that it has agreed to an equity investment by an affiliate of Sun Capital Partners, a Boca Raton, Fla.,-based 1/22/2003 7:00 AM Eastern
Mackie Designs (Woodinville, Wash.) announced that it has agreed toan equity investment by an affiliate of Sun Capital Partners, a BocaRaton, Fla.,-based private investment firm.
Under the proposed transaction, Sun Capital would acquireapproximately 9.8 million shares of Mackie common stock, orapproximately 65% of Mackie's total common stock outstanding, throughthe purchase of approximately 7.4 million outstanding shares fromselling shareholders and approximately 2.4 million newly issuedshares--for a total of approximately $10 million in cash.
The proposed transaction is subject to certain conditions, includingMackie's ability to refinance its current debt, Sun Capital's approvalof additional information to be provided by Mackie and other customaryterms and conditions. Mackie also plans to voluntarily file to delistfrom Nasdaq National Market effective as of the closing, and intends tobe approved for trading on the OTC Bulleting Board.
According to Mackie CEO Jamie Engen, the transaction is expected toclose by the first week of February; upon closing Mackie will receive$6.4 million in capital. Engen also said that although company founderGreg Mackie is selling a portion of his shares, he will remain ashareholder and will be on an exclusive consulting agreement withMackie.
"We are focused on reducing costs and increasing productivitythroughout the organization, including the rationalization of Mackie'sglobal manufacturing operations, R&D and product lines," saidEngen. "We are making progress in these efforts and welcome theinvolvement of Sun Capital as an active partner in the next phase ofour growth."