DUBUQUE, Iowa — Flexsteel Inds. said this morning its board has unanimously rejected an unsolicited proposal by CSC Generation Holdings to acquire the public company for $20.80 per share.
“After careful review and consideration of CSC’s unsolicited proposal, our board determined that the proposal substantially undervalues Flexsteel, is opportunistic, and is not in the best interest of the company or our shareholders,” said Flexsteel Chairman Thomas M. Levine, said in a statement.
“The board is confident that the management team’s continued successful execution of Flexsteel’s strategic plan will generate superior long-term value for shareholders.”
The announcement suggests Flexsteel reached the same conclusion that some members of its dealer base did last week.
Flexsteel President and CEO Jerry Dittmer added, “Following another record-setting sales year in fiscal 2022, we continue to make notable strides in executing our strategic plan, strengthening our supply chain and investing in talent, product innovation and digital capabilities.
“In addition, our commitment to driving profitable growth and continued focus on working capital management will enable us to generate strong free cash flow, further strengthen our balance sheet and invest in additional long-term growth initiatives. By leveraging our financial strength and executing the three legs of our growth strategy – expanding our sales distribution, driving growth through new product categories, and expanding into new consumer segments – we are confident in our ability to navigate macroeconomic headwinds and increase our market share as we deliver value for our customers, business partners and shareholders over time.”
Flexsteel noted Wells Fargo Securities, LLC is acting as financial advisor and Faegre Drinker Biddle & Reath LLP is acting as legal advisor to the company.