CARROLLTON, Ga. and WAUKEGAN, Ill., Jan. 6, 2014 /PRNewswire/ -- Southwire Company ("Southwire") and Coleman Cable, Inc. (NASDAQ: CCIX) ("Coleman") today announced that Cubs Acquisition Corporation, a wholly owned subsidiary of Southwire ("Purchaser"), has commenced the previously announced tender offer for all of the outstanding shares of common stock of Coleman at a price of $26.25 per share, net to the seller in cash, without interest, less any applicable withholding taxes. On December 20, 2013, Southwire and Coleman announced that Southwire, Purchaser and Coleman had entered into a definitive merger agreement pursuant to which the tender offer would be made. Pursuant to the merger agreement, after completion of the tender offer and the satisfaction or waiver of certain conditions, Purchaser will merge with and into Coleman and, at the effective time of the merger, all outstanding shares of Coleman's common stock, other than (i) shares owned by Southwire, Purchaser, Coleman or any of their respective direct or indirect wholly-owned subsidiaries and (ii) shares owned by stockholders who have properly demanded and not withdrawn or lost their right to appraisal pursuant to the applicable provisions of Delaware law with respect to such shares, will be automatically cancelled and converted into the right to receive an amount in cash equal to the $26.25 offer price per share, without interest, less any applicable withholding taxes. After careful consideration, the board of directors of Coleman unanimously approved the merger agreement and the transactions contemplated thereby. Accordingly, the board of directors of Coleman unanimously recommends that Coleman's stockholders tender their shares into the tender offer. Southwire and Purchaser are filing with the Securities and Exchange Commission (the "SEC") today a tender offer statement on Schedule TO, including an offer to purchase and related letter of transmittal, setting forth in detail the terms and conditions of the tender offer. Additionally, Coleman will file with the SEC a solicitation/recommendation statement on Schedule 14D-9 setting forth in detail, among other things, the recommendation of Coleman's board of directors that Coleman's stockholders tender their shares into the tender offer.
Shares of Coleman Cable (Nasdaq:CCIX) were gapping down Tuesday morning with an open price 11.6% lower than Monday's closing price. The stock closed at $12.98 yesterday and opened today's trading at $11.47.