Acme Electric Corp. said based upon an updated forecast of improved sales, the board of directors has requested Ernst & Young for an updated fairness opinion of the consideration to be received by Acme’s shareholders under the previously announced merger with Key Components LLC. On May 26, 2000 Acme entered into a definitive merger agreement with Key, under which Key will acquire Acme for $9/share in cash. The transaction is valued at about $56.7 million, including assumption of $11 million of Acme debt. Based principally upon ongoing discussions with a large existing customer, Acme’s management said it is projecting substantially increased sales at its power distribution products division. Acme expects to receive Ernst & Young’s report by Sept, 25, 2000. While asserting that Acme is in breach of the merger agreement, and reserving all of its rights thereunder, Acme said Key Components has agreed to extend the termination date to Nov. 10, 2000, subject to certain conditions.
By DAVID ROBINSON, The Buffalo News, N.Y.
