The Jordan Company, a global private equity firm based in New York, has agreed to buy Santa Fe Springs, California-based Reinhold Industries, a publicly traded supplier of building components to the commercial and military aerospace industry, for approximately $41 million (€32.3 million), Reinhold said in a statement.
Jordan will buy Reinhold’s common stock for $12.50 per share. The Resolute Fund, a Jordon private equity fund of $1.5 billion that closed in October of 2002, will supply the capital for the transaction, the statement said.
Reinhold and Jordan have decided on a break up fee, the statement said. Should either party choose to back out of the agreement, Reinhold must pay Jordan a break up fee of 3 percent—approximately $1.23 million—of the sale total, as well as reimburse Jordan’s expenses up to $1 million.
As recently as January of 2005, Reinhold’s common stock traded at a company high of nearly $40 per share. Earlier this year, the value dipped below $10 per share. Yesterday Reinhold’s shares closed at $12.80 per share.
Founded as Reinhold Engineered Plastics in 1928, Reinhold began producing ablative composites, reinforced polymer structures that absorb damaging thermal energy as they burn during a spacecraft’s re-entry into the Earth’s atmosphere, in the 1940s and 1950s. Today, under the direction of president and CEO Michael Furry, Reinhold continues to produce ablative composites, but it also produces aircraft seatbacks and protective helmets.
The Jordan Company, Founded by John “Jay” Jordan in 1982, has approximately $2.5 billion in assets under management and focuses on middle market leveraged buyout transactions. Jordan joined The Edgewater Fund and Bolder Capital, two private equity firms that often co-invest, to fund the merger of Diversified Therapy and Praxis Clinical Services, two health management companies focused on wound care.