The board of directors of a Dubuque-headquartered company has rejected a proposed acquisition by a technology investment firm.
Flexsteel Industries announced Thursday that the board met with independent financial and legal advisers before unanimously rejecting an unsolicited offer from Indiana-based private equity firm CSC Generation Holdings Inc. Already a Flexsteel shareholder, the investment firm proposed acquiring the remaining shares of company stock for $20.80 per share in cash.
In a press release, Flexsteel board Chairman Thomas Levine stated that the acquisition offer was not “in the best interest of the company or our shareholders.”
Levine stated that Flexsteel’s board is confident that the current management team’s execution of the company’s strategic plan will provide greater long-term value than the proposed acquisition.
Last week, Flexsteel reported net sales of $124.5 million for the quarter ending June 30 — an 8.6% decrease from the same quarter in the prior fiscal year. Net sales for all of fiscal year 2022 increased by 13.6% to $544 million, compared to $478.9 million during the prior fiscal year.
Flexsteel reported a net loss of $0.3 million for the recently completed quarter, compared to net income of $5.8 million during the same period last year. The company saw a net income of $1.9 million for all of fiscal year 2022, down from $23 million in the prior fiscal year.