The Marygold Companies, Inc. (NYSE American: MGLD) has entered into a definitive merger agreement with funds managed by Madison Dearborn Partners (MDP). Under the terms of the agreement, MDP will acquire all outstanding shares of Marygold for $2.00 per share in cash.
The transaction was approved by the Company’s board of directors, which delegated the negotiation process to the Audit Committee. This Special Committee, composed solely of independent directors, evaluated the proposal and determined that the agreement is advisable, fair to the Company, and in the best interests of its stockholders.
Stockholder approval has been secured, with holders of approximately 75% of the voting power of the Company’s outstanding shares delivering written consent to approve the merger and related transactions. Because of this approval, the Company is prohibited under the terms of the Merger Agreement from responding to or accepting alternative acquisition proposals or terminating the agreement to pursue other offers.
Prior to finalizing the deal, Marygold conducted an extensive solicitation process to identify potential buyers. The Company received several proposals during this period, and details regarding the competitive process will be included in an information statement to be filed with the Securities and Exchange Commission and mailed to stockholders.
The Company operates across the financial services, food manufacturing, printing, and beauty products sectors through subsidiaries including USCF Investments, Marygold & Co., Step-By-Step Financial Planners, Gourmet Foods, Printstock Products, and Original Sprout. Its offices and manufacturing operations are located in the United States, New Zealand, and the United Kingdom.
