By Lisa Kerner
Charlotte, N.C., June 1 – Everlast Worldwide Inc. agreed to be acquired by the Hidary Group for $26.50 per share in an all-cash transaction valued at $146 million.
The per-share price is a 14.5% premium to Everlast stock’s closing price on May 31 and a 30% premium to the average closing price over the last month.
Everlast’s board of directors approved the agreement, which is subject to shareholder approval. The transaction is slated to close in the third quarter of 2007.
“We are pleased with the terms of this transaction and believe it is in the best interests of the company’s stockholders,” Everlast chairman, president and chief executive officer Seth Horowitz said in a company news release.
“The Hidary Group has been an excellent licensing partner and, as such, has not only embraced the Everlast brand but also our strategic direction and long-term vision.”
Other investors in addition to the New York-based Hidary Group include Gracie Capital, Ore Hill Partners and Seneca Capital.
Piper Jaffray & Co. and Olshan Grundman Frome Rosenzweig & Wolosky LLP advised Everlast.
Everlast designs, manufactures and markets boxing and fitness-related sporting goods equipment.
| Acquirer: | Hidary Group
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| Target: | Everlast Worldwide Inc.
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| Price per share: | $23.15
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| Announcement date: | June 1
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| Termination fee: | $37 million
|
| Expected closing: | Third quarter
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| Stock price for target: | Nasdaq: EVST: $10.63 on May 31
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