Blount Intl. Agrees To Be Acquired By American Securities, P2 Capital Partners

(RTTNews) - Blount International, Inc. (BLT) Friday announced a definitive agreement to be acquired by affiliates of American Securities LLC and P2 Capital Partners, LLC for around $855 million in all cash deal, including debt.

As per the agreement, Blount shareholders will receive $10 in cash for each share of Blount common stock they hold. The deal represents a premium of 86 percent to the closing stock price of Blount stocks on December 9, the last trading day before the announcement of the proposed transaction.

Blount said its independent directors unanimously approved the proposed transaction and the Special Committee and the independent members recommended that the shareholders adopt the merger agreement. P2 Capital Partners and certain of its affiliates, which collectively own approximately 14.9 percent of Blount's outstanding shares, have agreed to vote their shares as per the recommendation of its Board.

The merger agreement includes a 50-day "go-shop" period which runs through January 28, 2016.

Josh Collins, Blount's Chairman and CEO said, "The proposed transaction will deliver immediate value to Blount's shareholders and we expect it will also provide us with additional flexibility to execute our strategic plan as we continue to navigate the macroeconomic challenges facing our industry."

Blount expects to maintain its corporate headquarters in Portland, Oregon and its existing global distribution and sales footprints.

The proposed transaction is expected to close in the first half of 2016.