DEI Sale Gets Vote June 20, Growth Projected

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DEI Holdings, parent of Directed Electronics and brands such as Viper, scheduled a special shareholders meeting on Monday, June 20 to vote on a sale to Charlesbank Capital Partners for around $285 million.

In statements to shareholders, Directed said it is projecting revenue this year of $249.7 million and a gross profit of $112.2 million. Revenues are expected to increase over the next four years steadily, reaching $314.9 million in 2015 with gross profits of $142.7 million.

DEI shareholder to vote on sale June 20$182.2 million from the sale will be used to repay debt and $101.2 million will go to shareholders.

Two lawsuits have been filed against DEI in the Superior Court of California, San Diego County by shareholders who want to rescind the sale. The lawsuits allege the Board did not maximize shareholder value and that DEI directors are receiving financial benefits “not shared equally by all of our shareholders.” DEI said the suits are without merit and intends to vigorously defend against them.

Back in early 2009, DEI had preliminary discussions with a competitor regarding a possible business combination or sale, but the discussions failed.

Directed president, CEO and director Jim Minarik receives a base salary of $600,000. Minarik and the current management team will continue to lead the business and the company will keep its Vista, CA headquarters and offices in Maryland and Canada, reported the San Diego Business Journal back in May.

Trivest Partners owns 36.9 percent of DEI’s common stock.

Shareholders should receive in the range of $3.79 to $3,80 per share of common stock.

Charlesbank Capital Partners LLC is based in Boston. It manages more than $2 billion in capital.

Source: DEI Holdings

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