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Engineering, IT and Staffing Firm CDI Agrees to USD 155m AE Industrial Partners Buyout
Tuesday 01 August 2017

1 August 2017 - US-based engineering, information technology, and staffing solutions provider CDI Corp. (NYSE: CDI) has entered into a definitive agreement to be acquired by affiliates of private equity investor AE Industrial Partners, LLC in a USD 155m deal, the company said.

Under the deal, AEI will acquire all of the outstanding shares of the company's common stock for USD 8.25 per share in an all-cash tender offer and follow-on merger.

The agreement was unanimously approved by CDI's board of directors following a review of strategic alternatives that the company announced in March 2017.

In addition, shareholders representing 26% of shares outstanding have entered into tender and support agreements.

Under the terms of the agreement, AEI will commence a tender offer to purchase any and all of the outstanding shares of CDI's common stock for USD 8.25 per share in cash.

The purchase price represents a 33% premium to the closing price of USD 6.20 on July 28th and a 36% premium to the average closing price for the last 30 trading days of USD 6.06.

Upon completion of the transaction, CDI will become a privately held company.

The transaction, which is expected to close in 3Q17, is conditioned upon, among other things, satisfaction of a minimum tender condition, regulatory filings, and other customary closing conditions. There are no financing conditions associated with the proposed agreement.

Houlihan Lokey is serving as financial advisor to the company and Dechert LLP is serving as the company's legal advisor. Lincoln International is serving as financial advisor to AEI and Kirkland and Ellis LLP is serving as AEI's legal advisor.
Date Published: 01/08/2017
Target: CDI Corp
Country: USA
Deal Size: 155m (USD)
Sector: Machinery/Engineering
Type: LBO
Financing: Cash
Status: Agreed
Buyer: AE Industrial Partners, LLC
Buyer Advisor: Lincoln International , Kirkland and Ellis