Cossette reaches acquisition agreement with Mill Road Capital
Cossette has entered into an agreement to be acquired and taken private by Mill Road Capital, a private investment firm based in Greenwich, CT. Under the terms of the deal, Mill Road will acquire all issued and outstanding subordinate voting shares of Cossette for $7.87 per share. According to the company, the all-cash deal is not conditional on financing or due diligence, and represents a 50% increase over the offer of $5.25 per share made by Cosmos Capital on Oct. 30. As a private company, Cossette would continue to be led by its current management staff. Various senior officers and stakeholders of Cossette who collectively own approximately 30% of the shares of the company have agreed to vote in favour of the transaction. The agency's board of directors has unanimously approved the deal and recommended it to its shareholders. A special shareholders meeting will take place on Dec. 18 to vote on the transaction. If approved, Cossette will become a wholly-owned subsidiary of Mill Road. In the meantime, Cossette has agreed not to solicit competing bids, but it retains the ability to consider unsolicited bids. "We are very pleased with this transaction for many reasons," said Claude Lessard, chairman of the board, CEO and president of Cossette. "It better reflects Cossette's true value and exemplifies our commitment to maximize value for all our shareholders. Furthermore, it is occurring with a strategic partner that has already proven its respect for our organization, our brand and our people, and it ensures total continuity with our trusted clients who have supported us throughout this process. This transaction is fully supported by the senior management team." Cosmos Capital has issued a statement that it will review the transaction documents and weigh its options before determining future plans. Cossette's share price closed yesterday at $7.78.