Solvay America, Inc. signed an asset purchase agreement to acquire remaining 53% stake in Plextronics, Inc. for $32.6 million.
January 17, 2014 at 12:00 am EST
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Solvay America, Inc. signed an asset purchase agreement to acquire remaining 53% stake in Plextronics, Inc. for $32.6 million in a stalking horse agreement on January 16, 2014. Solvay America will pay $24.1 million of the purchase price in the form of a credit bid and the balance of $8.5 million in cash. The debtor in possession lender has agreed to provide financing. If this agreement is terminated for any reason and the seller consummates an alternative transaction at any time, the seller is not required to pay the buyer a termination or break-up fee. The proposed sale order proposes to authorize the debtor to use the purchase price cash component to pay the debtor's secured lenders in full upon closing the transaction contemplated in the stalking horse agreement. Plextronics, Inc. reported revenues of $2 million and net operating loss of $14 million.
As per an amended agreement signed on March 5, 2014, Solvay America, Inc. assigned the purchase agreement to Solvay USA, Inc. The transaction was approved by the bankruptcy Court on March 6, 2014.
Stanley E. Levine, Mark T. Hurford, Ayesha C. Bennett and Paul J. Cordaro of Campbell & Levine, LLC acted as legal advisors to Plextronics, Inc. Cowen and Company, LLC acted as financial advisor for Plextronics. Richard M. Assmus, Rebecca C. Davenport, Mark C. Dempsey, Marc H. Folladori, John D. Furlow, Robert F. Gray, Jr., Thomas S. Kiriakos, John F. Lawlor, Nichole E. Lopez-Tackett, Jeffrey Reed of Mayer Brown LLP acted as a legal advisors to Solvay America, Inc. and Mayer Brown LLP.
Universal Display Corporation is engaged in the research, development and commercialization of organic light emitting diode (OLED) technologies and materials for use in display and solid-state lighting applications. OLED is an emitting light device which can be manufactured on both flexible and rigid substrates, helping make it suitable for use in full-color displays and as lighting products. OLED displays can be used in the mobile phone, television, monitor, wearable, tablet, notebook and personal computer, augmented reality (AR), virtual reality (VR), and automotive markets. Its PHOLED technologies allow OLEDs to emit light through a process called phosphorescence. It has an intellectual property portfolio surrounding its existing PHOLED technologies and materials for both displays and lighting products, which the Company markets under the UniversalPHOLED brand. The Companyâs additional OLED technologies include FOLED Flexible OLEDs and OVJP Organic Vapor Jet Printing.