Chicago -- Cobra Electronics has been purchased by long-time rival Escort's parent company, Monomoy Capital Partners, and affiliates, in a cash-for-stock deal for $4.30 per share.
The deal calls for an affiliate of Monomoy to acquire all of the outstanding shares of common stock of Cobra in cash within 10 business days. The offer is conditioned on, among other things, the tender of a majority of the outstanding shares of Cobra Electronics' common stock.
Directors and officers of Cobra holding approximately 2.6 percent of the company’s outstanding shares have executed support agreements pursuant to which each of them will tender their shares in the tender offer.
"This transaction will deliver to Cobra Electronics' shareholders certainty of value and liquidity in the form of a cash payment immediately upon closing," said Jim Bazet, chairman and CEO of Cobra. "We are excited to work with Monomoy as this transaction marks the next stage in the evolution of the Cobra brand."
"We are thrilled to add Cobra's market leading products to the Monomoy portfolio," said Justin Hillenbrand, co-CEO of Monomoy. "We look forward to working with Cobra's team members, suppliers and customers for many years to come."
The transaction is expected to close in Q4.