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Chairman and Investor Group to Take Disc Graphics Private

Press release from the issuing company

HAUPPAUGE, N.Y., Sept. 6 -- Disc Graphics, Inc. today announced that it has entered into a definitive merger agreement pursuant to which an investor group consisting of Donald Sinkin, the chairman and chief executive officer of Disc, Main Street Resources, a private equity firm based in Westport, Connecticut, and certain other members of Disc's management will acquire the public stock of Disc for $1.82 in cash. This represents a premium of over 75% on yesterday's closing price. The Board of Directors of Disc unanimously approved the transaction following the recommendation of a special committee of independent directors of the Board of Directors. Under the terms of the Merger Agreement, which is subject to approval by a majority of Disc's stockholders and other usual and customary conditions, including the approval of Disc's primary secured lender, the public stockholders will receive $1.82 per share in cash. Following the merger, the capital stock of Disc will no longer be publicly traded. The merger is expected to be completed in late November 2002, although no assurance can be given that such transaction will be completed. A proxy statement describing the transaction will be filed shortly with the Securities and Exchange Commission and then mailed to stockholders. Disc Graphics, headquartered in Hauppauge, New York, is a diversified manufacturer and printer of specialty packaging focused on the home video, pharmaceutical, music, publishing and cosmetic markets. Disc Graphics products include prerecorded video, CD-ROM and audiocassette packaging, folding cartons for pharmaceuticals and cosmetics, book jackets, posters, pressure-sensitive labels and general commercial printing.