National Service Industries, Atlanta, will be acquired by California Investment Fund, LLC, a private investment firm based in San Diego, CA. The approximate cost of the transaction, based on a rate of $10 per share of common stock, is roughly $112 million.
The sale is expected to close in mid-2003.
NSI’s two businesses, Atlantic Envelope Co. and National Linen Service, are expected to continue operations with no significant changes in operations or management, according to the company. Brock A. Hattox, chairman and CEO, will make his previously announced retirement effective on the finalization of the sale.
The company has been plagued by asbestos-related liabilities, and softness in the direct mail envelope business.
"Although Atlantic Envelope remains the preferred vendor for a number of large financial services companies, volumes have dropped significantly due to consumer concerns over elevated personal debt levels and the uncertainty of the general economy," Hattox said in a statement.
