Big Flower, Thomas H. Lee Merge in $1.9 Billion Re-Capitalization
Big Flower Holdings, Inc. will be merged into BFH Merger Corp., an entity formed by holding company Thomas H. Lee Co. and financial advisory firm Evercore Capital Partners. BFH Merger was created to aid in a $1.9 billion re-capitalization of Big Flower.
The move follows an April 20 announcement in which the company said it would explore strategic alternatives. Under the current plan, each share of Big Flower common stock will be converted into $30 cash per share and just over one-fifth of a share of preferred stock.
Consummation of the merger is subject to company shareholder approval at a special shareholder meeting, which is expected to be held late in the third or early in the fourth quarter of 1999. Big Flower has cancelled its June 29 stockholder meeting.
Big Flower is an advertising and marketing services and solutions company specializing in targeted advertising inserts, circulation-building newspaper products, data-driven direct mail and direct marketing services and digital services. For the year ended March 31, the company’s revenue was approximately $1.8 billion, including all acquisitions.
