Membership-based campground owner/operator Thousand Trails Inc. has entered into a merger agreement that would take the company private later this year.
Thousand Trails, an American Stock Exchange-listed company, plans to merge with private equity firm Kohlberg & Co. Kohlberg has agreed to pay Thousand Trails stockholders $14.50 a share, which is a 55% premium over Thousand Trails’ stock closing price of $9.35 a share on Tuesday (April 29).
A $14.50 share price means Kohlberg is willing to pay a total of $113 million.
“We believe the acquisition of Thousand Trails not only provides an excellent return to our stockholders, but also provides a solid foundation for our members and employees by bringing in a committed, long-term investor dedicated to the future success of Thousand Trails,” said Bill Shaw, president and CEO of Thousand Trails.
Shaw and the other members of Thousand Trails’ management team would remain in their current jobs after the merger with Kohlberg.
“As a private company, Thousand Trails will be able to focus all of its resources on providing secure, friendly and affordable camping experiences to its members,” Shaw said. “We are confident that with the support of Kohlberg, we will be able to solidify further our leadership position in the camping industry. Our management team looks forward to achieving this goal.”
Shaw and Carl Marks Strategic Investment LP own 62% of Thousand Trails’ stock and they have agreed to vote in favor of the merger. The Thousand Trails Board also has indicated its unanimous approval of the merger.
A shareholder vote to officially approve the merger will take place in late July or early August.