DURA Automotive Systems Inc., parent of RV industry supplier firm Atwood Mobile Products, announced today (Nov. 17) that its $50-a-share bid to acquire Methode Electronics Inc. failed.
As of late Friday night (Nov. 14), the holders of about 25% of Methode’s Class B shares had agreed to sell to DURA at the $50-a-share price, but DURA stated earlier that it would not complete the purchase unless a majority of Methode’s Class B shareholders agreed to sell.
Consequently, DURA, primarily an auto industry supplier, allowed its tender offer to expire and the offer was not extended.
“We believe we made a responsible and fair proposal and believe that Methode’s Board erred in rejecting it,” said Larry Denton, DURA’s president and CEO. “DURA continues to be interested in expanding its electronics capabilities and will continue to aggressively pursue options that will allow us to expand our offerings and leverage our best-in-class engineering and production capabilities.”
Methode makes electronic components and subsystems for the automobile and information technology markets.
Separately, DURA revealed it had successfully completed the private placement of $50 million worth of debt securities that will be used to pay for The Creation Group, an RV industry supplier. The senior notes carry an 8.625% annual interest rate and are due 2012.
DURA plans to blend Elkhart, Ind.-based Creation into Atwood Mobile Products.