By Lisa Kerner
Charlotte, N.C., July 9 - Sequa Corp. agreed to be acquired by the Carlyle Group for $175 per share in a transaction valued at $2.7 billion. Carlyle, a private equity firm, will acquire all of the outstanding class A and class B shares of Sequa at a 54% premium to the closing prices on July 6.
The announcement came following an evaluation process by Sequa's board of directors and transaction committee.
"Our board unanimously supports becoming a part of the Carlyle family and recommends that our stockholders vote in favor of this transaction," chairman of the board Gail A. Binderman said in a news release.
The executors of the estate of company founder Norman E. Alexander and certain entities owned holding a total of 54% of class A and class B shares agreed to vote in favor of the transaction.
Sequa's go-shop period for additional third-party proposals ends Aug. 23. The transaction is slated to close in the fourth quarter of 2007.
Carlyle will fund the acquisition through a combination of equity contributed by affiliated investment funds along with external debt financing provided by Lehman Brothers, Citigroup and JP Morgan.
Sequa was advised by Evercore Group LLC and Cahill Gordon & Reindel. The New York diversified manufacturing company operates seven discrete operating units in aerospace, automotive, metal coating, specialty chemical, industrial machinery and other products.
| Acquirer: | Carlyle Group
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| Target: | Sequa Corp.
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| Transaction total: | $2.7 billion
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| Price per share: | $175
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| Announcement date: | July 9
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| Expected closing: | Fourth quarter of 2007
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| Stock price for target: | NYSE: SQAA; $113.52 on July 6
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