ATHOL, Mass. - The L.S. Starrett Company (NYSE:SCX), known for manufacturing precision tools and metrology systems, has agreed to a go-private transaction with MiddleGround Capital, an affiliate of a private equity firm. The deal, valued at $16.19 per share, marks a 63% premium over Starrett's closing stock price as of March 8, 2024.
Starrett's Chairman, CEO, and President, Douglas A. Starrett, expressed satisfaction with the agreement, highlighting MiddleGround's industry expertise and the envisioned benefits of becoming a private entity. MiddleGround's Managing Partner, John Stewart, echoed this sentiment, commending Starrett's reputation and the prospect of advancing the company's innovation and manufacturing capabilities.
The transaction, which is set to close in mid-2024, is subject to approval by Starrett shareholders and other closing conditions. Post-acquisition, Starrett will operate as a wholly owned subsidiary of MiddleGround and will be delisted from public markets.
Lincoln International LLC and Ropes & Gray LLP are advising Starrett, while William Blair & Company L.L.C. and Dechert LLP are advising MiddleGround on the acquisition and financing aspects of the deal.
Starrett, founded in 1880, has a history of global manufacturing with a product range exceeding 5,000 items serving various industrial and consumer markets. MiddleGround Capital, headquartered in Lexington, Kentucky, manages over $3.5 billion in assets and specializes in investments within the industrial and specialty distribution sectors.
This announcement is based on a press release statement.
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