Twin Vee PowerCats announced that it entered into a definitive agreement for a transaction that will combine a merger with USFM Corp. and the concurrent privatization of its recreational marine business, which includes the Twin Vee and Bahama Boat Works brands.
Under the agreement, a subsidiary of USFM would merge with the publicly traded company, while Twin Vee’s marine assets and liabilities would be transferred to a newly formed trust that will operate the business as a privately held company.
“This transaction represents an important milestone for the company,” lead independent director Kevin Schuyler said in a statement. “After a thorough review of strategic alternatives, our board concluded that the combination of the public company merger and the privatization of the marine business provides a compelling path forward for our stockholders, employees, customers and business partners.”
The company said the transaction is intended to provide greater strategic and financial flexibility while positioning both businesses for future growth. Twin Vee shareholders receive equity in the combined public company and contingent value rights tied to future distributions generated by the marine business.
Twin Vee said the marine business will continue operating in the ordinary course through and after the closing, with no immediate changes expected to customer service, vendor relationships or employee operations. The transaction was approved by the boards of both companies and is expected to close in the third quarter, subject to shareholder, regulatory and other customary approvals. Following the closing, the combined public company is expected to trade on NYSE American.
