SANTA FE SPRINGS, Calif. (AP) - Reinhold Industries Inc., which makes composite parts and sheet molding compounds, said it agreed to a takeover by private-equity investor Jordan Co. that values the company at $12.50 per share, or about $41.3 million.
The purchase price represents a 2.3 percent discount to Reinhold's Thursday closing stock price of $12.80 on Nasdaq.
''We look forward to working with the Reinhold management team to build a premier supplier to the commercial and military aerospace industry,'' said Jonathan F. Boucher, managing principal of Jordan. ''We plan to grow the business internally and through strategic acquisitions.''
Reinhold Acquisition Corp., an affiliate of Jordan, said late Thursday it will launch a tender offer within 5 business days to acquire all outstanding shares of Reinhold for $12.50 in cash. Reinhold's board has unanimously approved terms of the tender offer and merger, and recommends that shareholders accept the offer.
The company said 10 of its shareholders, representing about 49 percent of outstanding shares, have agreed to tender their stock in the offer. Under terms of the deal, Reinhold may not participate in talks with rival suitors, and will have to pay a breakup fee to Jordan Co. if either Reinhold or Jordan terminates the transaction.
New York-based Jordan Co. is an investment firm with about $2.5 billion of capital under management that sponsors and invests in middle-market leveraged buyout transactions. The acquisition will be funded by capital provided by Resolute Fund LP, a $1.5 billion private equity fund managed by Jordan.