Lexmark To Be Bought By China's Apex- Led Consortium For $3.6 Bln

(RTTNews) - Lexmark International Inc. (LXK), a printing and imaging solutions provider, late Tuesday announced that it has agreed to be bought by a consortium of investors led by China's Apex Technology Co., Ltd. for $40.50 per share in cash. The enterprise value of the deal would be approximately $3.6 billion, net of cash.

Including unfunded pension liabilities and disclosed restructuring costs, the enterprise value would be approximately $4 billion.

Along with Apex, a Chinese supplier of aftermarket printer consumables, the consortium includes PAG Asia Capital, affiliated to Asian private equity firm PAG, as well as Legend Capital Management Co., Ltd.

According to PAG, the deal would enable Lexmark to continue to focus on strategic initiatives and substantially expand its access to vast market opportunities in Asia.

The deal represents a 30 percent premium to Lexmark's undisturbed closing stock price on October 21, 2015, the date prior to the news of Lexmark's exploration of strategic alternatives becoming public.

Lexmark's Board also declared its regular quarterly cash dividend of $0.36 per share of Class A Common Stock. The dividend is payable on June 17, to shareholders of record as of the close of business on June 3.

The merger, which has been unanimously approved by Lexmark's Board of Directors, is expected to close in the second half of 2016, subject to shareholder and regulatory approval.

Upon the close of the deal, Lexmark's common stock will cease to be publicly traded on the New York Stock Exchange.

Following the transaction, the Consortium intends to maintain Lexmark's corporate headquarters in Lexington, Ky., and its Chairman and Chief Executive Officer Paul Rooke would continue to lead the firm. Lexmark's operations are expected to continue unaffected, including two business groups and its regional and country operations.

The merger will be financed through equity contributions by the Consortium and debt financing. The merger is not subject to a financing condition.

In the transaction, Goldman, Sachs & Co. is acting as the exclusive financial advisor to Lexmark, and Wachtell, Lipton, Rosen & Katz is acting as the company's legal counsel.

On the NYSE, Lexmark shares gained 0.96 percent on Tuesday and settled at $34.65.