Keller poised to go private
By Furniture Today Staff -- Furniture Today, November 30, 2003
Corydon, Ind. — Keller executives say they plan to take the case goods maker private in a move to save money and management time.
Keith Williams, who joined Keller as president and chief executive officer in August, said the company doesn't need the stock market to raise capital, and that disclosing quarterly financial information puts the company at a competitive disadvantage.
"We'll be a private company with no debt at all, growing revenue and a nice cash balance," he said. "We think all this will position the company for a good 2004."
David Richardson, chief financial officer, estimated the move will save the company about $300,000 a year in direct expenses, which doesn't count management time spent on complying with Securities and Exchange Commission reporting requirements. Taking the company private is expected to cost less than $1 million, including legal and investment banking fees and buying back stock, he said.
Keller proposes to buy back the holdings of any stockholder owning fewer than 500 shares at $4 per share, a premium on the $3.50 trading price before the buyback was announced. This will reduce the number of shareholders from about 500 to about 250. With fewer than 300 shareholders, Keller no longer will have to be a reporting company under federal securities law.
Only about 200,000 of Keller's 5.1 million outstanding shares will have to be bought back, Richardson estimated, and the company's management and board of directors will not change. The move is expected to be completed in the first quarter.
Keller, with sales of $17.7 million in this year's first three quarters, is one of the smallest publicly traded companies in the industry.
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