Coleman Cable Inc. buys Technology Research Corp. for $51.5 million.
CLEARWATER -- Coleman Cable Inc. (symbol: CCIX), an Illinois-based company, is set to acquire Clearwater-based Technology Research Corp. (symbol: TRCI) for $51.5 million in cash, or $7.20 per outstanding share of TRC stock.
Coleman made its first offer to buy TRC in January, offering $5.50 per share. Today's announced purchase price of $7.20 per share represents an 84% premium over TRC's traded value on Jan. 14, which is when Coleman first approached the Tampa firm about an acquisition.
"With the addition of TRC's power management and storage business, we will further diversify our portfolio to provide a wider range of electrical solutions to benefit our customers," says Gary Yetman, Coleman CEO and president, in a prepared statement.
As part of the agreement, Coleman has given executives at TRC 45 days to find a better offer from other prospective buyers. If a superior offer is made, Coleman's offer will be terminated, a statement explained.
Headquartered in Clearwater, Technology Research Corp. develops power management systems. The firm earned $2.84 million in profits on $34.8 million in revenues in its 2010 fiscal year, ended March 31. If the company were acquired, the 8 cents in annual per-share dividends it currently pays to its shareholders would contribute roughly $530,000 in additional profitability to its bottom line.
In February, Owen Farren resigned from his position as TRC's CEO, president and chairman. Days later, several of the company's remaining executives signed lucrative retention deals to protect them in the event of a takeover.