Shareholders Approve $225 Million Buyout
CHICAGO (AP) _ Shareholders of SFN Cos. approved on Wednesday a $225 million leveraged buyout by an investor group including members of the company’s management, SFN said.
Holders owning 85 percent of the outstanding common stock represented at the shareholders’ annual meeting approved the buyout, the company said.
Under the terms of the buyout, shareholders will get $36.75 cash and one preferred share in the new corporation with a liquidation value of $7.50 for each of the 10.6 million common shares outstanding.
The buyers of the company, a publishing and broadcasting concern known formerly as Scott Foresman & Co., include members of SFN management; Hallmark Cards, Inc.; affiliates of Drexel Burnham Lambert, Inc.; and E.M. Warburg Pincus & Co.
John R. Purcell, chairman of SFN, is among those in the takeover group, which has incorporated under the name New SFN Corp.
SFN said the merger should be completed Friday.