MOD-PAC – MPAC- Receives Proposal From Its Chairman of the Board and Its President and CEO to Acquire the Company
MOD-PAC CORP. (NASDAQ: MPAC), a high value-added, on-demand print services firm that designs and manufactures custom and stock folding cartons, today announced that it has received a formal proposal from Daniel G. Keane, Director, President and Chief Executive Officer and Kevin T. Keane, Chairman of the Board, (the “Buying Group”) to acquire the Company. Under this proposal, all stockholders of the Company would receive $7.20 in cash for each of their shares in a merger transaction. The Buying Group currently controls approximately 43% of the aggregate voting power of the outstanding shares of Common Stock and Class B Common Stock.
MPAC plans to form a Special Committee of its Board of Directors which will review and consider the Buying Group’s proposal on behalf of the Company. The Special Committee will retain a legal advisor and an independent financial advisor to assist it in its consideration of the proposal.
The Special Committee has made no determination as to whether the Company will or should be sold, whether on the terms of the Buying Group’s proposal or otherwise, and there can be no assurance that MOD-PAC will accept any acquisition proposal or that any such proposal, if accepted, will result in the consummation of a transaction.
About MOD-PAC CORP. – MPAC
MOD-PAC CORP. (MPAC) is a leading designer and manufacturer of folding carton packaging employing high value added services and on demand delivery. MPAC provides CUSTOM FOLDING CARTONS for branded and private label consumer products in the food and food service, healthcare, medical and automotive industries. The Company also offers a line of STOCK PACKAGING primarily to the retail confectionary industry. MOD-PAC also has a PERSONALIZED PRINT product line that offers a comprehensive line of products for consumer and corporate social occasions.
MPAC’s strategy for growth is to leverage its capabilities to innovate and aggressively integrate technology into its production operations providing cost-effective solutions for its customers. Applying its lean manufacturing processes, coupled with state-of-the-art printing technologies, MOD-PAC is able to address short-run, highly variable content needs of its customers with quick turn-around times relative to industry standards.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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