Pirate demands Angelica hire investment bank, consider sale of company

By Lisa Kerner

Charlotte, N.C., July 12 - Angelica Corp. investor Pirate Capital LLC reiterated its demand that the board "promptly retain the services of a nationally recognized investment banking firm for the purpose of effecting a sale of the company, through sales of assets, an extraordinary transaction or otherwise, and to publicly identify the investment banking firm and its mandate."

Pirate said if its demands are not met, it plans to nominate one or more persons to Angelica's board. The investor made the demands in a July 12 letter included as part of schedule 13D filing with the Securities and Exchange Commission.

Pirate believes Angelica's management team has been given enough time, more than three years, to deliver growth and "rejuvenate the company as an ongoing concern" but failed to do so.

As previously reported on July 2, Pirate Capital sold 150,000 shares of the company's stock for a total of $3.16 million and also called on the board at that time to hire an investment bank to advise Angelica on strategic alternatives.

The activist hedge fund also said it would also put a proposal to the company's annual meeting of shareholders recommending that the board take the same step.

Pirate currently owns 935,147 shares, or 9.8%, of Angelica's outstanding stock.

Angelica is a Chesterfield, Mo.-based provider of textile rental and linen management services principally to the health care industry.

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