"We are excited about this transaction, which we expect to close by the first week of February," said Mackie CEO Jamie Engen. "Upon closing, Mackie will receive approximately $6.3 million in fresh capital. Just as important, we also expect to benefit from the active support and hands-on participation of Sun Capital in assisting us to improve existing operations and to pursue potential new opportunities." He added that although Company founder Greg Mackie is selling a portion of his shares in the transaction with Sun Capital, he will remain a shareholder and will enter into an exclusive consulting agreement with Mackie at closing.
"We are excited about our investment in Mackie," said Jason Neimark, vice-president of Sun Capital Partners. He added, "Mackie has a strong brand, loyal customer base, and solid work force. We look forward to working with the management team to fully leverage these strong attributes and to position the Company for long-term success."
Engen continued: "We are focused on reducing costs and increasing productivity throughout the organization, including the rationalization of Mackie's global manufacturing operations, R&D, and product lines. We are making progress in these efforts, and welcome the involvement of Sun Capital as an active partner in the next phase of our growth."
Engen noted that the proposed transaction is subject to certain conditions, including Mackie's ability to refinance its current debt on terms satisfactory to Sun Capital, Sun Capital's approval of additional information to be delivered by Mackie, and other customary terms and conditions. Mackie also intends to voluntarily file for delisting from the Nasdaq National Market effective as of the closing and intends to be approved for trading on the OTC Bulletin Board.
(Lee Baldock)
