Fox Paine Completes Recapitalization Merger with Watkins-Johnson Company
Palo Alto and Foster City, CA. Watkins-Johnson Company (NYSE:WJ), a high technology company specializing in components and subassemblies for communications, announced today that it has completed the proposed recapitalization merger with FP-WJ Acquisition Corp., a company formed by certain investment funds managed by Fox Paine & Company, LLC (Fox Paine). Upon completion of the merger, FP-WJ will merge into Watkins-Johnson, with Watkins-Johnson being the surviving corporation continuing to operate under its present name.
Consistent with the terms of the merger agreement announced on October 26, 1999, the outstanding common shares of Watkins-Johnson have been converted into the right to receive $41.125 per share in cash. Effective with the close of the transaction, Watkins-Johnson becomes a private company and will no longer be listed on the New York Stock Exchange.
Malcolm Caraballo, 43, formerly the president of Watkins-Johnson s remaining business, Wireless Products Group (WPG), will be the president and CEO of the company and the WPG management team will remain in place.
"We are excited to establish this relationship with Fox Paine," stated Mal Caraballo. "Their experience and advice will be welcome as we continue our high revenue growth pattern." Caraballo continued, "We are paying close attention to relations with our customers and employees through this transition. The employees are enthusiastic about the future. We are maintaining our high level of customer service with new products and on-time delivery."
"This transaction continues our focus of investing in the communications industry," said Dexter Paine, president of Fox Paine. "Watkins-Johnson is widely recognized for its development and production of innovative, high-quality components and subassemblies for wireless communications, high-speed fiber infrastructure and broad band cable applications. We intend to strongly support Watkins-Johnson s continued expansion through internal growth and potential acquisitions in its industry. We are already enjoying our work with Mal Caraballo and his team and we look forward to building this business together."
Former Watkins-Johnson shareowners will shortly receive documents and instructions for transmitting their stock certificates or other appropriate evidence of stock ownership to the paying agent.
Fox Paine manages investment funds in excess of $500 million providing equity capital to growth-oriented, management-led buyouts and company expansion programs, and has sponsored acquisitions totaling approximately $2 billion over the last twelve months. Fox Paine engages exclusively in friendly transactions developed in cooperation with a company s management, shareholders and board of directors. The Fox Paine funds participants include the long-term equity arms of leading domestic and international public and corporate pension funds, endowments and financial institutions.
Contact:
Katherine Stoll (Watkins-Johnson) 650-813-2968
Josh Silverman Judy Wilkinson (J. Frank Associates) 212-355-4449, ext. 121/112
Katherine Stoll (Watkins-Johnson) 650-813-2968
Josh Silverman Judy Wilkinson (J. Frank Associates) 212-355-4449, ext. 121/112
