Falken Industries Ltd (OTCBB: FLKI) Confirms Receipt of Letter of Intent to Pursue Its Potential Acquisition at $ 1.50 Per Share
Marketwire “Press Releases “
TRENTON, NEW JERSEY — (MARKET WIRE) — 10/19/10 — Falken Industries Ltd (OTCBB: FLKI), a leading global manufacturer whose product conceptions are best known under the brand Clean Plus®, today acknowledged receipt of an unsolicited Letter of Intent from Norex International indicating its interest in acquiring a controlling interest in Falken Industries Ltd. at a price of $ 1.50 per share. Norex claims to have reached a formal assessment of FLKI and a final decision on proceeding with the acquisition yesterday. Norex is a major global supplier to the Distribution Network of Falken product conceptions. Norex claims in its missive to anticipate the due diligence process to be completed such that the acquisition would be finalized by the end of 1Q 2011. Falken management by Manuel Garcia , Communications Officer stated that a more thorough statement will be made regarding the complete scope of this unexpected offer. Management was not prepared to opine at this time on whether such a transaction would in its collective opinion be in the long term best interest of shareholders. “While the company is on the acquisition trail, it is not a willing partner to being acquired” added Garcia.
Garcia continued: “We began our journey to access potential diversification efforts two years ago with the announcement that we had created a new strategic planning unit recruiting Director Myron Young , an experienced retired executive in mergers and acquisitions to counsel Falken Management tasked with investigating potential diversification strategies, notably acquisitions of small manufacturers.”
While Falken has often been the subject of rumors in the professional press that it was or would be targeted by behemoths owning Clean Plus® competitors, the company has always indicated its unwillingness to accept the consequences of acquisition which it viewed as a certain loss of independence, creativity, risk taking, and flexibility. Acquirers would manifestly enhance their distribution presence, manufacturing and innovative faculties at a price of a fiercely creative and dogmatic independent management.
The economic realities of the day however, coupled to the Falken’s continued success, innovative reputation and huge pipeline have highlighted the company’s attractiveness to would be acquirers.
“This unsolicited offer to potentially acquire the company marks an unexpected first on this front.” said Garcia.
About Norex International (France) Inc. :
Norex is a leading manufacturer of consumer, industrial and professional chemical and wipe products. It is a significant global producer of the Falken Clean Plus® product conceptions. The Company is a privately held concern.