The trend of tuckunder M&A continues (see prior post “Those all-telling exits” Aug 27-09), and I realized that we failed to point out that Wellington Financial Fund III portfolio co. MTI Global has announced that its Polyfab business is being acquired by 3M for US$24 million. 3M is the US$58B ubiquitous specialty products company. Aerospace supply can be a tough business in Canada, and value maximization is the story here:
“The decision to recommend this course of action was taken following an extensive and ongoing review of the business which began more than one year ago,” said MTI’s Chairman, Robert Lord. “The board believes this is the best option to maximize value for shareholders.”
Shareholders are set to vote on the proposed deal next month. Congrats to the MTI Board and the investment banking team at TD Securities. A robust auction in a difficult economy is quite an accomplishment.
(disclosure – our Fund III owns shares in MTI)