Simpson Industries, Inc. said that it entered into a definitive agreement with an affiliate of Heartland Industrial Partners, LP, which will result in a merger between Simpson Industries and the Heartland affiliate. Under the terms of the agreement, each shareholder of Simpson is expected to receive $13.00 in cash per share at the closing.
The value of the transaction, including the assumption of debt, is estimated to be approximately $350 million. The Simpson Board of Directors has unani-mously approved the agreement.
"This merger clearly maximizes value for our shareholders and creates substantial growth opportunities for our business and employees," said Roy E. Parrott, Chairman and CEO of Simpson Industries. "Heartland is an ideal partner for Simpson Industries given their resources, vision for the business and understanding of the industry," added Mr. Parrott.
"Acquiring Simpson is the logical next step for Heartland in pursuing our strategy of assembling a full service provider of engineered metal products for automotive and industrial customers," explained David A. Stockman, Senior Managing Director of Heartland.
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"Simpson is one of the most respected suppliers in the automotive industry," said Timothy D. Leuliette, another Senior Managing Director of Heartland. "Simpson's strengths in design, development, machining and assembly of metal parts will be a critical enhancement to the capabilities we plan to bring together in our metal forming platform."
Heartland had separately announced on August 2, 2000 that it had reached an agreement to lead an equity investor group that will acquire control of MascoTech, Inc. MascoTech is a diversified manufacturing company with world-leading metal forming process capabilities and proprietary product positions serving transportation, industrial and consumer markets.
Heartland Industrial Partners, LP is a private equity firm established to "buy, build and grow" industrial companies in sectors ripe for consolidation and long-term growth. The firm has equity commitments in excess of $1.1 billion and intends to increase its commitments to $2 billion. Heartland was founded by David A. Stockman, a former partner of The Blackstone Group and a Reagan administration cabinet officer; Timothy D. Leuliette, the former President and Chief Operating Officer of Penske Corporation; and Daniel P. Tredwell, a former Managing Director of Chase Securities.
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