American Access, M&I Electric to merge
July 7, 2006 -- American Access Technologies, Inc. (AATK) has signed a letter of intent to merge with M&I Electric Industries, Inc., a provider of switch gear, drives, and other electrical products and services, primarily to the energy industry.
American Access Technologies, Inc. (AATK) announced that it has signed a letter of intent to merge with M&I Electric Industries, Inc., a Houston, TX-based provider of switch gear, drives, and other electrical products and services primarily to the energy industry. American Access says it expects to complete a share exchange transaction in the third quarter of 2006.
"Combining these two companies will optimize opportunity and maximize synergy. The timing could not be better for either company," contends Howard W. Kelley, chairman of the board of directors for American Access. "AATK is excited about the potential this combination creates and the immediate profit contribution we anticipate it will bring to our shareholders."
According to a press release, it is anticipated that the combination of the businesses will be completed by the issuance of American Access common stock in exchange for the outstanding shares of M&I Electric, and will result in the current shareholders of M&I Electric holding 80% of the total shares of American Access common stock to be outstanding after the closing.
"Not only is this company a well-regarded supplier and contractor to the booming oil and gas services sector, but this agreement will also open the door to China for our investors," continues Kelley. "Together, there will be opportunities to create shareholder value by accelerating sales and earnings growth and by accessing the capital markets to pursue other strategic growth opportunities."
Arthur G. Dauber, chairman and chief executive officer of M&I, is expected to be named CEO of the combined company at the close of the transaction. Dauber has served as CEO of M&I since 1984. Prior to that time, he held positions at the General Electric Co. in general management, strategic planning, and manufacturing. He also completed General Electric's manufacturing management program. Dauber holds a BS degree from the University of Michigan and an MBA from the University of Pennsylvania's Wharton School.
"We are excited about the combination with American Access and the platform for growth it represents through the public venue," comments Dauber. "This transaction should accelerate both companies' growth strategies and further enable negotiation and development of strategic collaborations and alliances."
The proposed acquisition is subject to negotiation of a definitive share exchange agreement with the M&I shareholders, approval by American Access shareholders, and continued listing of American Access stock on the NASDAQ stock market.
In order to accommodate the transaction schedule and address all matters requiring shareholder action at a single meeting, the annual American Access shareholders meeting usually occurring in July is now expected to be held later in the third quarter of 2006.