PECO II, Inc. announced the signing of a definitive agreement with Lineage Power Holdings, Inc.. Under the terms of the agreement, Lineage will acquire all of the outstanding shares of PECO II for $5.86 per share in cash. The offer price represents a 51% premium over the closing price of PECO II shares on February 17, 2010.
The Boards of Directors of both PECO II and Lineage have unanimously approved the proposed transaction. Certain of PECO II’s principal shareholders that collectively own approximately 17% of the outstanding shares of PECO II’s common stock, including Matthew P. Smith and trusts controlled by James L. Green, two members of PECO II’s Board of Directors, have agreed to vote their shares in favor of the transaction.
John G. Heindel, Chairman, President, and Chief Executive Officer of PECO II said, "Our Board of Directors firmly believes that this transaction, which represents a significant premium, is in the best interests of shareholders and of PECO II. "The Lineage Power Total Efficiency technology leads the industry by helping service providers lower energy costs with a broad, end-to-end offering. Together, our products and nationwide support infrastructure will create one of the largest and most capable professional services organizations for telecom power in North America."
Craig A. Witsoe, Chief Executive Officer of Lineage said, "PECO II is well respected for its high standard of customer service, responsiveness and easy-to-use systems design. The combined company can better serve the installed base and help customers expand for future growth with comprehensive, US-based engineering, product qualification, and support services."
The transaction is subject to the approval of PECO II stockholders. The companies anticipate that the transaction will be completed in the second calendar quarter of 2010.
