BEVERLY HILLS, Calif. & VAN NUYS, Calif.--(BUSINESS WIRE)--Platinum Equity and Electro Rent Corporation (Nasdaq: ELRC) today announced that the purchase price for Platinum Equity’s previously announced acquisition of Electro Rent has increased by 18% to $15.50 per share in cash from $13.12 per share, now valuing the purchase price at approximately $382.2 million.
The new purchase price represents a premium of 19% over the closing price on June 23, 2016, 45% over the average closing price of Electro Rent’s common stock during the past three (3) months, and 47% over the closing stock price on May 27, 2016, the last day of trading prior to the original announcement of the Platinum Equity agreement.
Platinum Equity’s increased purchase price resulted from Electro Rent’s receipt of an unsolicited third party acquisition proposal.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum
Equity (www.platinumequity.com)
is a global investment firm with more than $6 billion of assets under
management and a portfolio of more than 25 operating companies that
serve customers around the world. Platinum Equity specializes in
mergers, acquisitions and operations – a trademarked strategy it calls
M&A&O® – acquiring and operating companies in a broad
range of business markets, including manufacturing, distribution,
transportation and logistics, equipment rental, metals services, media
and entertainment, technology, telecommunications and other industries.
Over the past 20 years Platinum Equity has completed more than 175
acquisitions.
About Electro Rent
Electro Rent Corporation (www.ElectroRent.com)
is one of the largest global organizations devoted to the rental,
leasing and sales of general purpose electronic test equipment, personal
computers and servers.
Important Additional Information will be Filed with the SEC
In
connection with the proposed transaction, Electro Rent Corporation will
file or furnish relevant documents, including a proxy statement,
concerning the proposed transaction with the SEC. Investors and
stockholders of Electro Rent Corporation are urged to read the proxy
statement and other relevant materials when they become available
because they will contain important information about Electro Rent
Corporation and the proposed transaction. The final proxy statement will
be mailed to the company’s stockholders.
Investors and stockholders may obtain a free copy of the proxy statement and any other relevant documents filed or furnished by Electro Rent Corporation with the SEC (when available) at the SEC’s Web site at www.sec.gov. In addition, copies of the proxy statement and other filings made by the Company with the SEC can also be obtained, free of charge, by directing a request to Electro Rent Corporation, 6060 Sepulveda Boulevard, Van Nuys, CA 91411, Attention: Corporate Secretary.
Electro Rent Corporation and its directors and certain executive officers may be deemed to be participants in the solicitation of proxies from Electro Rent Corporation stockholders in respect of the proposed transaction. Information about the directors and executive officers of Electro Rent Corporation and their respective interests in Electro Rent Corporation by security holdings or otherwise is set forth in its proxy statement for the 2015 Annual Meeting of Stockholders, which was filed with the SEC on September 9, 2015 and its Annual Report on Form 10-K for the year ended May 31, 2015, which was filed with the SEC on August 13, 2015. Stockholders may obtain additional information regarding the interests of Electro Rent Corporation and its directors and executive officers in the Merger, which may be different than those of Electro Rent Corporation’s stockholders generally, by reading the definitive proxy statement and other relevant documents regarding the Merger, when filed with the SEC. Each of these documents is, or will be, available as described above.
“Safe Harbor” Statement
Except for the historical statements
and discussions in this press release, the company’s statements above
constitute forward-looking statements within the meaning of section 21E
of the Securities Exchange Act of 1934. These forward-looking statements
reflect Electro Rent’s management’s views and expectations at this time
with respect to future events and financial performance, based on
currently available information. Forward looking statements in this
press release include statements regarding the completion of the sale
transaction to Platinum Equity. When used, the words “anticipate”,
“believe”, “expect” and “will” and other similar expressions identify
forward-looking statements. Forward-looking statements are based on
assumptions about future operations and market conditions, and are
subject to certain risks and uncertainties. The company believes its
assumptions are reasonable; nonetheless, it is likely that at least some
of these assumptions will not come true. Accordingly, Electro Rent’s
actual results will differ from the outcomes contained in any
forward-looking statement, and those differences could be material.
Factors that could cause or contribute to these differences include,
among others, those risks and uncertainties discussed in the company’s
periodic reports on Form 10-K and 10-Q and in its other filings with the
Securities and Exchange Commission, including: general macroeconomic
conditions may not improve or may deteriorate; U.S. federal government
spending with respect to defense and other research and development
activities may not increase or may decline; Electro Rent may not succeed
in retaining its key sales or other personnel; competition may cause the
company to lower prices and margins to effectively compete; and
manufacturers of test and measurement equipment may not be willing to
enter reseller arrangements with Electro Rent or those agreements may
not succeed to the level anticipated. Should one or more of the risks
discussed, or any other risks, materialize, or should one or more of our
underlying assumptions prove incorrect, the company’s actual results may
vary materially from those anticipated, estimated, expected or
projected. In light of the risks and uncertainties, there can be no
assurance that any forward-looking statement will in fact prove to be
correct. You should not put undue reliance on these statements. Electro
Rent undertakes no obligation to update or revise any forward-looking
statements.