Chromcraft management proposes to buy company
Furniture Today Staff -- Furniture Today, May 6, 2013
WEST LAFAYETTE, Ind. - Furniture manufacturer and importer Chromcraft Revington may be headed for a management buyout, the company announced.
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.
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 statement said the company and the proposed buyers were in negotiations but had not reached a definitive agreement.
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.