Investment Group Bruckman, Rosser, Sherrill & Co. to acquire O'Sullivan for 0.77 times revenue

Weekly Corporate Growth Report, Nov 1, 1999

Investment Group Bruckman, Rosser, Sherrill & Co. to Acquire O'Sullivan for 0.77 Times Revenue

The Deal: O'Sullivan Industries Holdings, Inc. has revealed that its Board of Directors has approved an amended merger agreement with OSI Acquisition, Inc., an affiliate of Bruckmann, Rosser, Sherrill & Co., L.L.C. Under the terms of the new merger agreement, the consideration per share has been reduced to $16.75 in cash and one share of senior preferred stock with a liquidation value of $1.50. Prior to this amendment, the original agreement consideration per share consisted of $17.50 in cash and one share of senior preferred stock with a liquidation value of $1.75.

Discussion: O'Sullivan Industries is the third largest ready-to-assemble U.S. furniture manufacturer, behind Sauder Woodworking and Bush Industries. O'Sullivan's products are primarily sold in the United States and England through office superstores, mass merchandisers, catalog showrooms and department stores. Office superstores OfficeMax and Office Depot together account for 33% of O'Sullivan's sales. O'Sullivan has capitalized on the rise of home offices with desks, filing cabinets, computer workstations, book cases and credenzas.

O'Sullivan has also branched out and is now offering video and audio equipment stands and racks, home entertainment centers and bedroom furniture. Home decor furniture includes kitchen, dining room, living room and recreational room furniture.

OSI Acquisition, Inc., an affiliate of Bruckmann, Rosser, Sherrill & Co., L.L.C., is an investment group which includes members of O' Sullivan's own management team.