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Paragon Corporate Holdings & Multigraphics, Inc. Announce Merger Agreement
Paragon Corporate Holdings, Inc. and Multigraphics, Inc. announced that they have entered into a definitive agreement to merge. Paragon Corporate Holdings is the parent company of the A.B.Dick Company, a worldwide supplier to the graphic arts industry. The combination of A.B.Dick and Multigraphics will create an international manufacturer and distributor of equipment, supplies and services to the graphic arts industry, with combined annual revenues of approximately $300 million.
Under terms of the agreement, Paragon will acquire Multigraphics for $1.25 in cash per share of common stock. In addition, Paragon will assume the outstanding debt of Multigraphics. "We are capitalizing on the opportunity to grow our graphic arts supply and services business," Paragon Chief Financial Officer Edward J. Suchma said. "The combined market and industry expertise of A.B.Dick and Multigraphics creates a powerful force in the graphic arts industry. We believe the combined organizations can achieve benefits in economies of scale, thus demonstrating the overall positive impact of this merger."
The transaction will be accounted for as a purchase and is expected to close by the end of 1999. The transaction is subject to stockholder approval, expiration of the Hart-Scott-Rodino antitrust review period and other customary conditions. Under the merger agreement, Paragon may receive a termination fee under certain circumstances. There can be no assurance that the merger agreement will result in a transaction.
The stock of Multigraphics, Inc., whose corporate headquarters is in Mount Prospect, IL, is traded on the American Stock Exchange under the ticket symbol "MTI". The company provides a full range of high-quality prepress, press and post-press equipment, supplies and technical services to a broad national customer base. Paragon Corporate Holdings acquired A.B. Dick in January, 1997. In addition, Paragon’s Curtis Industries subsidiary supplies a wide range of automotive and maintenance, repair and operating supplies. Including Multigraphics, Paragon will have annual revenues of approximately $370 million.