Lifetime Brands, Inc. confirmed it has received an unsolicited, non-binding indication of interest from Mill Road Capital Management LLC in acquiring all of the outstanding shares of Lifetime, that it does not already own, for a $20.00 per share price in cash.
The company’s Board of Directors declared its commitment to act in the best interests of all stockholders. Their Board of Directors will consult advisers to carefully evaluate this unsolicited interest in context of Lifetime’s long term strategic plans. Lifetime wanted to let their stockholders know that there is no need to take any action at this time.
They also want to caution stockholders, and others, against trading in its securities based on this limited information. The company has only just received Mill Road Capital’s interest and no decisions have been made regarding a formal response. There is no assurance that any definitive offer will be made, nor that any agreement will actually be consummated.
They do not intend to comment further on this action until the Board of Directors has completed their review. At that time, Lifetime will communicate with the stockholders, in accordance with applicable securities laws.
Update: The board made their decision – see results below
The stock related clarifications are intended to assuage possible suspicions investors have regarding investment firms who buy a company such as Lifetime. Investment firms usually execute such transactions with the intention of flipping the brands for profit down the road, without regard for the future of the affected products.
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Who Are Lifetime Brands
Based in Garden City, N.Y., Lifetime markets products under well-known kitchenware brands such as Farberware, KitchenAid, Sabatier, Savora, Built and Vasconia, and also executes private label branding.
Considering this vast collection of products, it is easy to understand why someone would want to own such a company. Their brand partners share impressive “center hall” location at trade shows, and accordingly attract focused attention from retail buyers and media alike.
Along with many housewares geeks, Kitchenboy hopes the Lifetime board of directors will do everything possible to ensure the fine brands under their care continue to be available to consumers.
Lifetime Brands today, April 19th, 2017, announced that its Board of Directors unanimously rejected the unsolicited and non-binding proposal from Mill Road Capital Management LLC to acquire all of the outstanding shares of Lifetime that it does not already own.
Lifetime’s Board of Directors carefully and thoroughly reviewed Mill Road’s proposal and unanimously determined that pursuing it was not in the best interests of Lifetime’s stockholders.
“We value the constructive relationship we have had with Mill Road since it first invested in Lifetime and appreciate its confidence in Lifetime’s value creation potential. However, the Lifetime Board unanimously believes that Lifetime’s prospects as an independent company remain strong and that our goal of continuing to build long-term stockholder value will be best served by remaining focused on the execution of our strategy,” said Jeffrey Siegel, Lifetime’s Chairman and Chief Executive Officer.
The end? We shall see.