Wednesday, February 13, 2008 - 10:23 AM CST
Sun Capital affiliate acquires 90% of Kellwood shares
St. Louis Business Journal
Sun Capital Securities Group said Wednesday its affiliate, Cardinal Integrated LLC, has acquired about 90 percent of Kellwood Co.'s shares and has commenced a subsequent offering period for the other 10 percent of Kellwood's untendered shares.
When the cash tender offer of $21 per share expired at midnight Eastern time on Tuesday, 15.8 million Kellwood shares were validly tendered representing approximately 70.5 percent of the outstanding shares of Kellwood. Sun Capital already had an 11.4 percent stake in Kellwood bringing the total to 81.9 percent of Kellwood's total outstanding shares.
Sun Capital said additional shares were guaranteed to be delivered within the next three days, which if added to the tendered shares and Sun Capital's existing stake, would represent more than 90 percent of Kellwood's total outstanding shares.
The new offering period for the remaining 10 percent of untendered shares will expire at midnight Eastern time on Friday, Feb. 15. Shareholders who tender will still receive $21 per share.
At the completion of the new offering period, Kellwood will merge into Cardinal Integrated and become a wholly-owned subsidiary of the company. Kellwood's stock will be delisted and will no longer trade on the New York Stock Exchange.
Boca Raton, Fla.-based Sun Capital Partners Inc. is a private investment firm focused on leveraged buyouts. The firm has approximately $10 billion of equity capital under management.
St. Louis-based Kellwood Co. (NYSE: KWD) manufactures branded and private-label apparel and recreational and camping equipment.