PE firm to take Globecomm private for $340m

Satellite communications provider Globecomm Systems Incorporated has agreed to be taken private by investment firm Wasserstein & Co for about $340m.

Reuters reports that Wasserstein’s offer of $14.15 per share in cash represents a 1.73 per cent discount to Globecomm’s closing price on Friday.

Globecomm shares fell by three per cent to $13.95 on the Nasdaq on Monday morning, trading well below the offer price. The stock had risen 24 per cent to Friday since the company said in January that it was exploring strategic alternatives.

The transaction is expected to be financed through cash provided by Wasserstein affiliates and other co-investors, and debt financing, Globecomm said in a statement.

Wasserstein & Co, founded by the late Bruce Wasserstein in 2001, has made deals worth $3bn. It manages the New York magazine, which is solely owned by the Wasserstein family.

The deal is expected to close in the fourth quarter of this year.

Needham & Co was the financial adviser to Globecomm for the deal, while Kramer Levin Naftalis & Frankel LLP was the legal counsel.

Jones Day is the legal adviser to Wasserstein, and US Space LLC advised the investment firm.

Meanwhile, the billionaire Pritzker family will buy scrap mill servicing company TMS International Corporation  for about $687m in cash.

The offer of $17.50 from the Pritzker Organization represents a premium of about 12 per cent to TMS’s Friday close of $15.57. Including debt, the deal is valued at about $1bn.

The Pritzker Organization is a merchant bank run by certain members of Chicago’s Pritzker family, which controls Hyatt Hotels, Triton Container and the Marmon Group.

TMS, controlled by Canada’s Onex Group, helps steel mills buy and sell scrap and manage slag, a by-product of the steel making process. It operates 36 brokerage offices across five continents.

Onex Group’s affiliates, including Onex Corporation, hold about 60 per cent of TMS.

BofA Merrill Lynch advised TMS on the deal, which is expected to close in the fourth quarter. Kaye Scholer LLP was its legal adviser.

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