Management buyout of Chromcraft Revington on table
April 19, 2013-- Furniture Today,
WEST LAFAYETTE, Ind. — Furniture manufacturer and importer Chromcraft Revington may be headed for a management buyout, the company announced late Thursday.
Chairman and CEO Ronald Butler and other members of the management team have entered into a nonbinding letter of intent and term sheet regarding a proposed deal, which would value the company at $5 million and distribute cash to stockholders.
One complicating factor is that the company, which has been publicly held, is partially owned by an employee stock ownership plan. The plan is not expected to be cashed out in connection with the transaction and would maintain its stake, according to the announcement.
"The company and RMMJ (the acquisition company created by the management team) are currently in negotiations and have not yet finalized or entered into a definitive agreement regarding the proposed transaction," the statement said.
Earlier, Chromcraft Revington had announced that it was voluntarily delisting its stock from the New York Stock Exchange and would no longer file statements with the Securities and Exchange Commission as a public company, steps it said would save the company money.
Chromcraft also said it had been notified this week by the NYSE that it was in violation of the exchange's listing requirements because it hasn't yet filed its Form 10-K annual report for 2012. The company said it expects to file the report on or before May 31.
Through the first three quarters of last year, the company reported sales of $41.7 million, an increase of 5.6% from the same period a year earlier, and a loss of $3.44 million or 69 cents per share. That compared with a loss of $4.1 million or 86 cents per share in the first three quarters of 2011.