Quinpario Signs LOI To Buy 2 Private Firms For Total Value Of $2.7 Bln

(RTTNews) - Quinpario Acquisition Corp. 2 (QPAC, QPACW, QPACU), a special purpose acquisition company, announced late Friday that it entered into a non-binding letter of intent to acquire and combine two privately owned companies. The proposed transaction is valued at a total enterprise value of approximately $2.7 billion.

These businesses are owned respectively by funds managed by a global private-equity firm and a family office-affiliated fund. The two privately owned companies have combined pro forma revenue of approximately $1.5 billion and EBITDA of $385 million.

With the acquisitions, the company would form a market-leading business process outsourcing platform with expertise in financial technology, information services and data processing.

All proceeds from the proposed transaction would be used for deleveraging and for general corporate purposes.

Quinpario said the company and the sponsors have an exclusivity agreement in order to work toward entering into a definitive agreement providing for the transaction.

There can be no assurance that a definitive agreement will be entered into or that the proposed transaction will be consummated.

Notwithstanding that Quinpario has requested stockholders to approve an extension of time to complete an initial business combination through July 24, 2017, if Quinpario is unable to enter into a definitive agreement for an initial business combination by March 31, 2017, it will promptly file the necessary proxy materials with the SEC to seek shareholder approval to dissolve and liquidate.