SPAR Group Enters into Definitive Agreement to be Acquired by Highwire Capital for $2.50 Per Share
SPAR Group (NASDAQ: SGRP), a provider of merchandising, marketing, and distribution services, has entered into a definitive agreement to be acquired by Highwire Capital for $2.50 per share in cash. This represents a 72% premium over SPAR Group's closing share price on August 30. The transaction, unanimously approved by SPAR Group's Board of Directors, will result in SPAR Group becoming a privately held company and delisting from NASDAQ.
The deal is expected to close in Q4 2024, subject to stockholder approval and regulatory approvals. Highwire has secured debt financing to consummate the transaction. William H. Bartels, a board member holding approximately 20% of outstanding shares, has entered into a voting agreement with Highwire. Upon closing, SPAR Group will continue to be led by current President and CEO Mike Matacunas.
Il gruppo SPAR (NASDAQ: SGRP), fornitore di servizi di merchandising, marketing e distribuzione, ha firmato un accordo definitivo per essere acquisito da Highwire Capital per 2,50 dollari per azione in contante. Questo rappresenta un premio del 72% rispetto al prezzo di chiusura delle azioni del gruppo SPAR del 30 agosto. La transazione, approvata all'unanimità dal Consiglio di Amministrazione del gruppo SPAR, porterà alla sua trasformazione in una società a capitale privato e alla cancellazione dalla NASDAQ.
Si prevede che l'accordo si chiuda nel quarto trimestre del 2024, soggetto all'approvazione degli azionisti e alle autorizzazioni normative. Highwire ha ottenuto un finanziamento debitorio per portare a termine la transazione. William H. Bartels, un membro del consiglio con circa il 20% delle azioni in circolazione, ha firmato un accordo di voto con Highwire. Al termine dell'operazione, il gruppo SPAR continuerà ad essere guidato dall'attuale presidente e CEO Mike Matacunas.
El grupo SPAR (NASDAQ: SGRP), proveedor de servicios de merchandising, marketing y distribución, ha firmado un acuerdo definitivo para ser adquirido por Highwire Capital por 2.50 dólares por acción en efectivo. Esto representa un premio del 72% sobre el precio de cierre de las acciones del grupo SPAR el 30 de agosto. La transacción, aprobada por unanimidad por la Junta Directiva del grupo SPAR, resultará en que el grupo SPAR se convierta en una empresa de capital privado y se deliste de NASDAQ.
Se espera que el acuerdo se cierre en el cuarto trimestre de 2024, sujeto a la aprobación de los accionistas y a las aprobaciones regulatorias. Highwire ha asegurado financiamiento de deuda para completar la transacción. William H. Bartels, un miembro de la junta que posee aproximadamente el 20% de las acciones en circulación, ha firmado un acuerdo de votación con Highwire. Al cierre, el grupo SPAR continuará siendo dirigido por el actual presidente y CEO Mike Matacunas.
SPAR 그룹 (NASDAQ: SGRP)는 머천다이징, 마케팅 및 유통 서비스 제공업체로 Highwire Capital에 인수되는 확정 계약을 체결했습니다. 주당 2.50달러 현금입니다. 이는 8월 30일 SPAR 그룹의 종가에 비해 72%의 프리미엄을 나타냅니다. 이 거래는 SPAR 그룹 이사회의 만장일치 승인을 받았으며, SPAR 그룹이 사Private 회사로 전환되고 NASDAQ에서 상장폐지될 것입니다.
이번 거래는 2024년 4분기에 종료될 것으로 예상되며, 주주 승인 및 규제 승인을 조건으로 합니다. Highwire는 거래를 완료하기 위해 부채 자금을 확보했습니다. 약 20%의 발행 주식을 보유한 이사 William H. Bartels는 Highwire와 투표 계약을 체결했습니다. 거래가 완료되면 SPAR 그룹은 현재의 회장 겸 CEO인 Mike Matacunas에 의해 계속해서 이끌어질 것입니다.
Le groupe SPAR (NASDAQ: SGRP), fournisseur de services de merchandising, de marketing et de distribution, a signé un accord définitif pour être acquis par Highwire Capital pour 2,50 $ par action en espèces. Cela représente une prime de 72% par rapport au prix de clôture de l'action du groupe SPAR le 30 août. La transaction, approuvée à l'unanimité par le Conseil d'Administration du groupe SPAR, amènera le groupe SPAR à devenir une société privée et à être retiré de NASDAQ.
Il est prévu que l'accord se clôture au quatrième trimestre 2024, sous réserve de l'approbation des actionnaires et des autorisations réglementaires. Highwire a sécurisé un financement par endettement pour réaliser la transaction. William H. Bartels, un membre du conseil détenant environ 20% des actions en circulation, a signé un accord de vote avec Highwire. À la clôture, le groupe SPAR continuera d'être dirigé par l'actuel président et CEO Mike Matacunas.
Die SPAR Group (NASDAQ: SGRP), Anbieter von Merchandising-, Marketing- und Vertriebsdiensten, hat eine endgültige Vereinbarung getroffen, um von Highwire Capital übernommen zu werden für 2,50 $ pro Aktie in bar. Dies stellt eine Prämie von 72% gegenüber dem Schlusskurs der SPAR Group am 30. August dar. Die Transaktion, die einstimmig vom Vorstand der SPAR Group genehmigt wurde, wird dazu führen, dass die SPAR Group eine privat gehaltene Gesellschaft wird und von NASDAQ abgemeldet wird.
Es wird erwartet, dass der Deal im 4. Quartal 2024 abgeschlossen wird, vorbehaltlich der Genehmigung der Aktionäre und der behördlichen Genehmigungen. Highwire hat eine Fremdfinanzierung gesichert, um die Transaktion abzuschließen. William H. Bartels, ein Vorstandsmitglied mit etwa 20 % der ausstehenden Aktien, hat eine Abstimmungsvereinbarung mit Highwire getroffen. Nach dem Abschluss wird die SPAR Group weiterhin von dem derzeitigen Präsidenten und CEO Mike Matacunas geleitet.
- 72% premium offered over the closing share price, creating immediate value for shareholders
- 37.8% premium over SPAR Group's 30-day volume-weighted average share price
- Unanimous approval from SPAR Group's Board of Directors
- Secured debt financing commitment from Highwire Capital
- Retention of current leadership team post-acquisition
- Delisting from NASDAQ, potentially reducing liquidity for remaining shareholders
- Requirement of minimum $14,200,000 balance sheet cash at closing
- Potential loss of public company status and associated benefits
Insights
The acquisition of SPAR Group by Highwire Capital at
The transition to private ownership could provide SPAR with more flexibility for long-term strategic decisions, free from quarterly public reporting pressures. However, current shareholders lose future upside potential. The involvement of a
This acquisition exemplifies a trend of private equity firms targeting undervalued public companies. Highwire Capital's focus on "transforming businesses through technology" suggests potential operational improvements and growth strategies for SPAR Group post-acquisition.
The 37.8% premium over the 30-day volume-weighted average price indicates a fair valuation, considering market volatility. The debt financing commitment from Highwire is crucial, ensuring deal certainty. The retention of the current CEO, Mike Matacunas, post-acquisition suggests continuity in leadership and strategy, which could be beneficial for a smooth transition.
The unanimous approval by SPAR Group's Board of Directors and the involvement of a Special Committee in reviewing strategic alternatives demonstrate strong corporate governance practices. This process likely helped secure a favorable deal for shareholders.
The transition from public to private ownership will significantly alter SPAR's governance structure. While this may streamline decision-making, it also reduces public transparency. Shareholders should carefully consider the long-term implications of this change, weighing the immediate premium against potential future growth as a public entity.
- Letter of Intent Previously Announced on June 5, 2024
$2.50 Per Share Merger Consideration Represents a72% Premium to SPAR Group’s Closing Share Price on August 30
AUBURN HILLS, Mich., Sept. 03, 2024 (GLOBE NEWSWIRE) -- SPAR Group, Inc. (NASDAQ: SGRP) (“SPAR”, “SPAR Group” or the “Company”), a provider of merchandising, marketing and distribution services, announced today it has entered into a definitive agreement to be acquired by Highwire Capital ("Highwire"), an investment firm focused on transforming businesses through technology.
Under the terms of the agreement, which has been unanimously approved by SPAR Group’s Board of Directors, SPAR Group stockholders will receive
Mike Matacunas, SPAR Group’s President and CEO said, “I’m very pleased to be announcing this agreement today as the transaction will result in immediate and substantial value creation for our stockholders. This transaction represents a culmination of an extensive and lengthy review by our Special Committee and Board of Directors of strategic alternatives to provide value to our stockholders and offer financial flexibility for our company to pursue future growth initiatives.”
The transaction is expected to close in the fourth quarter of 2024, subject to the receipt of stockholder approval, regulatory approvals, and the satisfaction of other customary closing conditions.
Transaction Details
Highwire has obtained a debt financing commitment, the proceeds of which will be sufficient for Highwire to consummate the transaction contemplated by the merger agreement.
Simultaneously with the execution of the merger agreement, William H. Bartels, a member of the SPAR Board and holder of approximately
As a closing condition, the Company will have balance sheet cash of not less than
Following the close of the transaction, SPAR Group will continue to be led by Mike Matacunas, who has been its President and CEO since early 2021.
Advisors
Lincoln International LLC is serving as SPAR’s financial advisors and Foley & Lardner LLP is serving as the Company’s legal advisers. Ferguson Braswell Fraser Kubasta P.C. is acting as Highwire’s legal advisers.
About Highwire Capital
Highwire Capital transforms middle-market businesses by integrating innovative technologies with traditional operating models. By driving efficiency and fostering industry advancements, Highwire revitalizes established entities into leading platforms for disruption and growth. For more information, please visit Highwire’s website at http://www.highwire.capital.
About SPAR Group, Inc.
SPAR Group is an innovative services company offering comprehensive merchandising, marketing and distribution solutions to retailers and brands. We provide the resources and analytics that improve brand experiences and transform retail spaces. We offer a unique combination of scale and flexibility with a passion for client results that separates us from the competition. For more information, please visit the SPAR Group’s website at http://www.sparinc.com.
Forward Looking Statements
This Press Release (this “Press Release”) contains “forward-looking statements” within the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, made by, or respecting, the Company. Forward-looking statements include information concerning the proposed merger (the “Proposed Merger”) of the Company and Highwire Merger Co. I, Inc. (“Merger Sub”), a wholly owned subsidiary of Highwire Capital, LLC (“Parent”), pursuant to the terms of the Agreement and Plan of Merger, dated as of August 30, 2024, by and among the Company, Parent and Merger Sub. “Forward-looking statements” are defined in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, and other applicable federal and state securities laws, rules and regulations, as amended.
All statements (other than those that are purely historical) are forward-looking statements. Words such as “may,” “will,” “expect,” “intend,” “believe,” “estimate,” “anticipate,” “continue,” “plan,” “project,” or the negative of these terms or other similar expressions also identify forward-looking statements. Forward-looking statements made by the Company in this Press Release may include (without limitation) statements regarding: risks, uncertainties, cautions, circumstances and other factors (“Risks”). Those Risks include (without limitation): the impact of the news of the Proposed Merger or developments in it; the uncertainty of approval by SGRP’s stockholders and satisfaction of other closing conditions respecting the Proposed Merger; the impact of the Company’s continued strategic review process, or any resulting action or inaction, should the Proposed Merger not occur; the impact of selling certain of the Company’s subsidiaries or any resulting impact on revenues, earnings or cash; the impact of adding new directors or new finance team members; the potential negative effects of any stock repurchase and/or payment; the potential continuing negative effects of the COVID pandemic on the Company’s business; the Company’s potential non-compliance with applicable Nasdaq director independence, bid price or other rules; the Company’s cash flow or financial condition; and plans, intentions, expectations, guidance or other information respecting the pursuit or achievement of the Company’s corporate objectives.
You should carefully review and consider the Company’s forward-looking statements (including Risks and other cautions and uncertainties) and other information made, contained or noted in or incorporated by reference into this Press Release, but you should not place undue reliance on any of them. The results, actions, levels of activity, performance, achievements or condition of the Company (including its affiliates, assets, business, clients, capital, cash flow, credit, expenses, financial condition, foreign exchange, income, liabilities, liquidity, locations, marketing, operations, performance, prospects, revenues, sales, strategies, taxation or other achievement, results, Risks, trends or condition) and other events and circumstances planned, intended, anticipated, estimated or otherwise expected by the Company (collectively, “Expectations”), and our forward-looking statements (including all Risks) and other information reflect the Company’s current views about future events and circumstances. Although the Company believes those Expectations and views are reasonable, the results, actions, levels of activity, performance, achievements or condition of the Company or other events and circumstances may differ materially from our Expectations and views, and they cannot be assured or guaranteed by the Company, since they are subject to Risks and other assumptions, changes in circumstances and unpredictable events (many of which are beyond the Company’s control). In addition, new Risks arise from time to time, and it is impossible for the Company to predict these matters or how they may arise or affect the Company. Accordingly, the Company cannot assure you that its Expectations will be achieved in whole or in part, that it has identified all potential Risks, or that it can successfully avoid or mitigate such Risks in whole or in part, any of which could be significant and materially adverse to the Company and the value of your investment in the Company’s common stock.
These forward-looking statements reflect the Company’s Expectations, views, Risks and assumptions only as of the date of this Press Release, and the Company does not intend, assume any obligation, or promise to publicly update or revise any forward-looking statements (including any Risks or Expectations) or other information (in whole or in part), whether as a result of new information, new or worsening Risks or uncertainties, changed circumstances, future events, recognition, or otherwise.
Additional Information and Where to Find It
This Press Release relates to the Proposed Merger. A special meeting of the stockholders of the Company will be announced as promptly as practicable to seek stockholder approval in connection with the proposed Merger. The Company expects to file with the SEC a proxy statement and other relevant documents in connection with the proposed Merger. Stockholders of the Company are urged to read the definitive proxy statement and other relevant materials filed with the SEC when they become available because they will contain important information about the Company, Parent, Merger Sub and the Proposed Merger.
Stockholders may obtain a free copy of these materials (when they are available) and other documents filed by the Company with the SEC at the SEC’s website at www.sec.gov, at the Company’s website at https://investors.sparinc.com/ or by sending a written request to the Company 's Secretary at its principal executive offices at 1910 Opdyke Court, Auburn Hills, Michigan 48326.
Participants in the Solicitation
The Company, its directors and certain of its executive officers and employees may be deemed to be participants in soliciting proxies from its stockholders in connection with the Proposed Merger. Information regarding the persons who may, under the rules of the SEC, be considered to be participants in the solicitation of the Company’s stockholders in connection with the Proposed Merger and any direct or indirect interests they have in the Proposed Merger will be set forth in the Company’s definitive proxy statement for its special stockholder meeting when it is filed with the SEC. Information relating to the foregoing can also be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on April 1, 2024, its First Amendment to the 10-K on Form 10K/A filed with the SEC on April 30, 2024 and the Company’s definitive proxy statement for its 2023 Annual Meeting of Stockholders filed with the SEC on October 13, 2023 (the “Annual Meeting Proxy Statement”).
To the extent that holdings of the Company’s securities by its officers, directors and
| Media Contact: Ronald Margulis RAM Communications 908-272-3930 ron@rampr.com | Investor Relations Contact: Sandy Martin Three Part Advisors 214-616-2207 smartin@threepa.com | Highwire Capital Contact: Ben Hudson Highwire Capital, LLC ben@highwire.capital |
FAQ
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