Home / M&A Activity / Versar OKs Acquisition Offer From Kingswood Capital Management

Versar OKs Acquisition Offer From Kingswood Capital Management

Versar has agreed to be purchased by affiliates of Los Angeles-based private equity firm Kingswood Capital Management through a cash tender offer.

Kingswood agreed to buy all outstanding shares of stock in the Springfield, Virginia-based project management company for 15 cents per share and begin the cash tender offer no later than Oct. 6, Versar said Monday.

Versar said it will operate as a privately held firm upon the transaction’s completion and the offer will expire 25 days after its commencement.

Versar’s board of directors and advisers consulted nearly 150 strategic and financial sources to consider options for the strategic process that resulted in the merger plan.

“We recognize the benefit and critical importance of expeditiously realizing this value for our shareholders during what remains a challenging time in the government contracting world and in our working relationship with our lender, Bank of America,” said Paul Hoeper, chairman of the board of directors at Versar.

“With the assistance of the company’s financial advisor, Canaccord Genuity, the company conducted a thorough process and received a merger proposal from Kingswood,” Hoeper said.

Versar stopped trading on the New York Stock Exchange Friday and its stock closed at 48 cents per share.

Check Also

Galveston Coastal Services Awarded $228M Army Contract for Engineering Services

Galveston Coastal Services, a Houston-based joint venture, has won a potential eight-year, $228M architecture and engineering contract from the U.S. Army Corps of Engineers.

Navy Awards Seven Positions on $100M IDIQ for NAVFAC Southwest Area Construction Services

One joint venture and six independent firms have landed spots on a potential five-year, $100M contract from the U.S. Navy to support design-build projects within the Naval Facilities Engineering Command's southwest area of responsibility.