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CUI Global to Acquire 4 Companies to Create Diversified Energy Services Provider.

MANews-(C)2009-2019

21 May 2019 - Oregon, US-based CUI Global, Inc. (NASDAQ: CUI) has executed a letter of intent to acquire 100% of the outstanding stock of four privately-held companies for consideration consisting of cash, seller debt and CUI Global equity, the company said.

The terms of the letter of intent contemplate a total consideration for the transaction consisting of the issuance of approximately 160m shares of CUI Global stock; USD 30m in cash; a USD 45m 1-year unsecured sellers note; the assumption of USD 15m of sellers outstanding secured debt and an earn-out payable over five years of up to USD 200m.

Upon completion of the transaction, CUI Global shareholders will own approximately 15% of the stock of the combined company.

CUI Global expects to finance the cash contribution of the transaction through debt financing. The company is being assisted and represented by B. Riley FBR, Inc.; the selling companies are represented by Sanjiv Shah and David Faherty of Simmons Energy | A Division of Piper Jaffray.

The combination of CUI Global (Pro Forma CUI) as the public company platform with four privately-held companies will create a diversified energy services company addressing an estimated USD 184bn in annual spend in the US mid-stream/mid-and down-stream sector of the oil and gas industry.

CUI Global, Inc. is a publicly traded company dedicated to maximising shareholder value through the acquisition and development of innovative companies, products and technologies.

Country: USA

Sector: Petroleum/Natural Gas/Coal

Target: Four privately-held companies in the midstream energy sector

Buyer: CUI Global, Inc

Vendor:

Deal size in USD: 230.8m

Type: LBO

Financing: Cash and Stock

Status: Agreed

Buyer advisor: B. Riley FBR , ,

Comment: The combination of CUI Global (Pro Forma CUI) as the public company platform with four privately-held companies will create a diversified energy services company addressing the US mid-stream/mid-and down-stream sector of the oil and gas industry.

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Publication:M & A Navigator
Date:May 21, 2019
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