By Lisa Kerner
Charlotte, N.C., June 4 - 1-800 Contacts, Inc. agreed to be acquired by affiliates of Fenway Partners, LLC for $24.25 per share in a deal valued at an estimated $340 million.
The per-share price is a 21% premium over the June 1 closing share price of $20.08 and a 34% premium over the average closing share price during the 30 trading days ending June 1.
A $10.33 million termination fee is included in the agreement. The transaction, which is not conditioned on financing, is expected to close during the second half of fiscal 2007.
The board of directors of 1-800 Contacts approved the merger agreement and recommends that its stockholders do the same.
"We believe this transaction with Fenway Partners is the right decision for our stockholders, our company, our employees, and our customers," chief executive officer Jonathan Coon said in a company news release.
"This transaction will not only provide significant premium value for our stockholders, but will allow the company to pursue its long-term goals with the flexibility and long-term focus of a private company."
Sonenshine Partners LLC, Goldman, Sachs & Co. and Kirkland & Ellis LLP advised 1-800 Contacts board of directors.
1-800 Contacts allows consumers to obtain replacement contact lenses over the phone or through the internet.
Fenway Partners is a middle-market private equity firm with offices in New York and Los Angeles.
| Acquirer: | Fenway Partners LLC
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| Target: | 1-800 Contacts, Inc.
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| Price per share: | $24.25
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| Announcement date: | June 4
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| Expected closing: | Second half of 2007
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| Stock price for target: | Nasdaq: CTAC: $20.08 on June 1
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