Versar OKs Acquisition Offer From Kingswood Capital Management

Versar has agreed to be purchased by affiliates of Los Angeles-based private equity firm Kingswood Capital Management through a cash tender offer.

Kingswood agreed to buy all outstanding shares of stock in the Springfield, Virginia-based project management company for 15 cents per share and begin the cash tender offer no later than Oct. 6, Versar said Monday.

Versar said it will operate as a privately held firm upon the transaction™s completion and the offer will expire 25 days after its commencement.

Versar™s board of directors and advisers consulted nearly 150 strategic and financial sources to consider options for the strategic process that resulted in the merger plan.

œWe recognize the benefit and critical importance of expeditiously realizing this value for our shareholders during what remains a challenging time in the government contracting world and in our working relationship with our lender, Bank of America,” said Paul Hoeper, chairman of the board of directors at Versar.

“With the assistance of the company’s financial advisor, Canaccord Genuity, the company conducted a thorough process and received a merger proposal from Kingswood, Hoeper said.

Versar stopped trading on the New York Stock Exchange Friday and its stock closed at 48 cents per share.

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