CPAC, Inc. announced Tuesday a merger agreement with Buckingham Capital Partners II, L.P., whereby Buckingham will acquire all of the outstanding shares of CPAC for about $42.8 million, plus the assumption of nearly $6.7 million in debt.
The transaction is expected to be completed in the first quarter of 2007.
CPAC, headquartered in Leicester, N.Y., operates in two industries. Its Fuller Brands unit produces commercial, industrial, and household cleaning products, as well as custom brushes and personal care lines. The CPAC Imaging division manufactures imaging chemicals, equipment, and supplies.
Under the terms of the merger agreement, CPAC shareholders will receive $8.65 in cash for each share of CPAC common stock they hold, a 16 percent premium over the average closing price of CPAC's common stock over the last 90 trading days.
CPAC's global headquarters is expected to remain in Leicester, and there are no current plans to change management or employment levels at CPAC or its subsidiaries.
Buckingham Capital Partners, based in New York City, is a private investment firm specializing in leveraged buyouts of U.S.-based, lower-middle-market industrial and manufacturing companies.