UPDATE: Platinum Equity ups bid for IDG

Industrial Distribution staff -- Industrial Distribution, 4/22/2008 6:21:00 AM

The plot thickened in the bidding war for Industrial Distribution Group Inc. as Platinum Equity Advisors LLC trumped all previous bids with a $130.6 million, $11.80-per-share offer for the Atlanta-based MRO distributor. It’s the latest volley in the battle over IDG, which began with Platinum’s initial offer of $113 million, or $10.30 per share.

IDG’s board accepted that offer, but later revealed that an entity then known only as “Bidder D”—which turned out to be Wesco International, the parent company of Wesco Distribution—had submitted a $120.7 million, $11 per-share counter-offer.

Then another private equity player, Luther King Capital Management Corp., said it would pay $128.4 million ($11.70 per share), prompting Wesco to up the ante with a $130 million, $11.75-per-share offer.

IDG’s board then rescinded its acceptance of the original offer from Platinum in favor of the Wesco bid.

But in light of the latest salvo from Platinum, IDG said Wesco and Luther King have until 3 p.m. April 22 to submit counter-offers. Platinum's new bid expires at 5 p.m., but if either of the other two suitors makes a counter offer, Platinum would have three days to respond.

“At a special meeting held late yesterday, the [IDG] board of directors determined unanimously that Platinum Equity's new, $11.80-per-share offer … would be accepted if [IDG] does not receive an executed definitive offer, with superior terms for the company's stockholders, from Wesco or Luther King Capital Management,” IDG said in a statement.

“We are pleased by Platinum Equity's decision to offer more value to IDG's stockholders for their company," IDG chairman Richard Seigel said. “At the same time, we obviously want to take advantage of the opportunity to permit Wesco and Luther King Capital Management to assess their respective interests in possibly acquiring the company at a price above the $11.80 per share that has been offered by Platinum Equity.”

IDG’s board said it scheduled a special meeting April 22 to discuss any counter-offers and would issue a statement after the market closes to report any developments. Stay tuned to INDUSTRIAL DISTRIBUTION for full coverage of this developing story.

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