A merger agreement has been reached which will have Sherman Oaks-based Earl Scheib being acquired by San Diego-based Kelly Capital, LLC for $2 per share, a 567 percent premium over its recent $0.30 per share price. The board of the 72-year-old company unanimously approved the merger which will require approval by stockholders. Should that be achieved, the transaction is expected to close on April 15. The transaction is valued at approximately $8 million. Kelly will be getting not only the 85 Scheib automotive paint and collision repair shops located throughout the U.S., but also a wholly-owned-subsidiary that manufactures paint coating systems used in the automotive, equipment manufacturing and building construction industries.
Earl Scheib to be Acquired by Private Equity Fund