Spar Group in LOI with Highwire to go private with Highwire Capital

Spar Group announced that based on the unanimous approval of the Board and a Special Committee of Independent Directors formed to evaluate strategic alternatives, the Corporation has entered into a letter of intent LOI which is non-binding, in all respects, other than a defined term of exclusivity and certain legal terms, with Highwire Capital. Highwire has offered to acquire the Corporation in a merger transaction for consideration of $58M or $2.50 per share, payable in cash, subject to certain adjustments, and the negotiation and execution of a definitive merger agreement, including the satisfaction of any conditions in such an agreement. “The Board believes that agreement to this proposal is the best way to secure the recent value created and deliver a meaningful return to our shareholders,” said Jim Gillis, Chairman of the Board. “Upon completing a thorough process and analysis over the last 18+ months, we considered a number of alternatives. Working with management, we began a process to dispose of the joint ventures, bring cash back into the business and focus on the U.S. and Canada. This strategy energized the stock and provided us an opportunity to capture value for our shareholders in this LOI.” Other factors that were considered by the Board included: Advice and counsel from Lincoln International, a financial advisor, having discussed the potential value of the Corporation and alternatives with more than 165 parties Output of a thorough and exhaustive process evaluating alternatives to create maximum shareholder value…