Wind Point Partners to Acquire Knape & Vogt Manufacturing Company
February 10 2006 - 9:20AM
PR Newswire (US)
KV Board Cites Complementary Vision, Strong Valuation in Approving
Deal GRAND RAPIDS, Mich., Feb. 10 /PRNewswire-FirstCall/ -- Knape
& Vogt Manufacturing Co. (NASDAQ:KNAP) today announced it has
entered into an agreement to be acquired by private equity firm
Wind Point Partners for $19 per share in cash. Knape & Vogt's
board of directors has approved the agreement with Wind Point
Partners and intends to recommend to Knape & Vogt shareholders
that they adopt the agreement. Knape & Vogt ("KV"), the Grand
Rapids, Mich.-based manufacturer and distributor of drawer slides,
shelving, storage and ergonomic office products, announced in
October 2005 it had retained W. Y. Campbell & Company, an
investment banking firm, to evaluate strategic alternatives,
including a possible sale of the Company, in an effort to maximize
shareholder value. The sale price represents a 47 percent premium
to the average share price over the thirty days preceding the
October 2005 announcement. "This is the right opportunity for Knape
& Vogt, providing a maximum return for shareholders and a
continuation of our heritage as a leading product innovator and
manufacturer," said Bill Dutmers, chairman and CEO of Knape &
Vogt. "We have been constrained by our capital structure and the
cost burdens of being a publicly traded company, and view this
acquisition by Wind Point Partners as an ideal opportunity to
invest in the future of this organization." Salam Chaudhary,
principal of Wind Point Partners, added: "Knape & Vogt's
heritage of quality products and strong customer relationships
provide a platform to build on as we look to enter new market
segments and pursue additional acquisitions. We look forward to
partnering with the strong management team of Knape & Vogt to
continue its growth." Knape & Vogt said that Wind Point's track
record of investments in more than 80 companies and its approach of
partnering with existing management and staff were important
factors in the board's decision to approve this agreement. The
agreement is subject to Knape & Vogt shareholder approval, as
well as certain conditions, including Wind Point's satisfactory
completion of the due diligence process and securing of financing.
The transaction is expected to close in the second or third quarter
of calendar 2006. Knape & Vogt employs about 600 people at its
headquarters and main manufacturing facilities in Grand Rapids and
a smaller manufacturing operation in Ho Chi Minh City, Vietnam, and
showroom and sales offices in Chicago and Mississauga, Ontario.
About Knape & Vogt Knape & Vogt Manufacturing Co. brings
more than a century of experience to the design, manufacture and
distribution of kitchen and bath storage solutions and office
products for original equipment manufacturers, specialty
distributors, office furniture dealers, hardware chains and major
home centers throughout the country. Additional information on KV's
product lines is available on http://www.knapeandvogt.com/ . About
Wind Point Partners Wind Point Partners is a private equity
investment firm with offices in Chicago, Illinois and Southfield,
Michigan that manages more than $1.8 billion in capital. Wind Point
focuses on partnering with top caliber management teams to acquire
solid middle market businesses. Wind Point has successfully
invested in more than 80 companies since 1984. Additional
information about Wind Point is available at
http://www.wppartners.com/ . SAFE HARBOR UNDER THE PRIVATE
SECURITIES LITIGATION ACT OF 1995 Certain statements contained in
this news release that are not historical facts constitute
forward-looking statements, within the meaning of the Private
Securities Litigation Reform Act of 1995, and are intended to be
covered by the safe harbors created by that Act. Forward-looking
statements may be identified by words such as "estimates,"
"anticipates," "projects," "plans," "expects," "believes,"
"should," and similar expressions, and by the context in which they
are used. Such statements are based only upon current expectations
of Knape & Vogt. Reliance should not be placed on
forward-looking statements because they involve known and unknown
risks, uncertainties and other factors, which may cause actual
results, performance or achievements to differ materially from
those expressed or implied. Knape & Vogt undertakes no
obligation to update any forward-looking statements to reflect
events or circumstances after the date on which they are made.
Statements concerning expected financial performance, business
strategies and action, which Knape & Vogt intends to pursue to
achieve its strategic objectives, constitute forward-looking
information. Implementation of these strategies and achievement of
such financial performance are subject to numerous conditions,
uncertainties and risk factors, which could cause actual
performance to differ materially from the forward-looking
statements. These include, but are not limited to, the ability of
Knape & Vogt to identify and execute a viable strategic
alternative, Knape & Vogt's continuing to maintain its current
growth and profitability and overall economic conditions and other
business factors. Readers are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the
date of this press release. First Call Analyst: FCMN Contact:
DATASOURCE: Knape & Vogt Manufacturing Co. CONTACT: Leslie
Cummings, Vice President of Finance and Treasurer of Knape &
Vogt Manufacturing Company, +1-616-459-3311, Ext. 225; Jeff Lambert
or Ryan McGrath of Lambert, Edwards & Associates,
+1-616-233-0500 Web site: http://www.knapeandvogt.com/
http://www.wppartners.com/
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