This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

MVC Capital Announces Sale Of Summit Research Labs

Company to Record an Approximate Gain of $47 Million From Sale of Portfolio Company

MVC to Retain Summit's Custom Spray Drying Business

PURCHASE, N.Y., Feb. 13, 2013 (GLOBE NEWSWIRE) -- MVC Capital, Inc. (NYSE:MVC) (the "Company"), a publicly traded business development company that makes private debt and equity investments, announced today the signing of a definitive agreement to sell one of its portfolio companies, Summit Research Labs ("Summit"), a specialty chemical company that manufactures and markets antiperspirant actives globally, to an affiliate of One Rock Capital Partners, LLC, subject to regulatory approvals and the satisfaction of other customary closing conditions, including an escrow.

Prior to the completion of the transaction, MVC and other existing Summit shareholders will purchase Summit Custom Spray Drying ("SCSD") from Summit. These proceeds are expected to be returned to Summit's shareholders upon completion of the Summit sale to One Rock. SCSD provides custom spray drying products to the food, pharmaceutical, nutraceutical, flavor and fragrance industries. SCSD will operate as a stand-alone business following the closing of the Summit sale. 

Assuming full realization of the closing conditions and escrow and the sale of SCSD, MVC Capital would receive gross proceeds from its equity investment of approximately $63 million, that results in an estimated gross IRR of 31% since August 2006 (the time of the original investment). The gross IRR includes all fees and distributions received from its equity position in Summit over the life of the investment. The transaction is expected to close prior to March 31, 2013. 

As part of the sale, MVC will provide Summit with a $22 million second lien loan. 

"We are pleased to have reached an agreement to monetize our investment in Summit, expected to result in a realized gain of approximately $47 million [1]. This gain is in addition to the $12 million special dividend MVC received from Summit in 2012, adding to the overall return of this investment and highlighting our ability to build shareholder value," said Michael Tokarz, Chairman and Portfolio Manager of MVC. "MVC's management will look to redeploy the proceeds from the sale of Summit with a focus on building shareholder value."  

"We have enjoyed working with Summit's highly skilled management team to build the company into a leading global manufacturer of antiperspirant actives, and we look forward to continuing to support the success of the team as a lender under One Rock ownership," said Shivani Khurana, Director of Summit and Managing Director of TTGA, investment adviser to MVC Capital, Inc.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,041.54 -190.48 -1.04%
S&P 500 2,104.20 -21.86 -1.03%
NASDAQ 5,032.7510 -56.6110 -1.11%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs