News Column

Private equity firm to buy Cobra Electronics for $28 million

August 28, 2014

By Becky Yerak, Chicago Tribune



Aug. 28--A New York private equity firm, making its second Illinois deal in a month, said Thursday that it has struck a deal to buy Chicago-based Cobra Electronics Corp. for more than $28 million in cash.

The $4.30-a-share offer represents an 8 percent premium to Cobra's closing stock price on Wednesday. Several law firms, however, have already issued press releases saying that shareholders of the designer and marketer of communication and navigation products can do better.

They cite a 52-week high trading price of $4.35 a share. Yahoo Finance lists Cobra's 52-week high as $4.47. In afternoon trading on Thursday, shares were at $4.28.

Buyer Monomoy, which has a bent for manufacturing companies, plans to buy Cobra with its second fund. Other Monomoy holdings include denim manufacturer American Textile Holdings, and parts suppliers Compass Automotive Group and ContMid Group.

In July, Monomoy said it bought Park Forest-based ContMid Group LLC and Tiffin Holdings LLC from the Kaminski family, which has owned and run the $240 million parts manufacturer for 10 years. ContMid and an affiliated company have six facilities in Illinois, Indiana, Ohio and Michigan with 650 workers. Terms of that deal weren't disclosed.

Cobra is based at 6500 W. Cortland St. in Chicago. As of Dec. 31, it had 112 employees in the United States and 40 persons in its international operations.

As of Aug. 7, Cobra had more than 6.6 million shares outstanding.

byerak@tribune.com

Follow @beckyyerak Follow @chibreakingbiz

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Source: Chicago Tribune (IL)


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