FranklinCovey Announces Completion of the Sale of Its Consumer Solutions Business Unit
Proceeds From Sale to Repurchase Common Stock
SALT LAKE CITY--(BUSINESS WIRE)--FranklinCovey (NYSE: FC) today announced that it has completed its previously announced sale of substantially all of the assets of its Consumer Solutions Business Unit (CSBU) to Franklin Covey Products, LLC. Franklin Covey Products, LLC, which is controlled by Peterson Partners, a private equity firm, purchased the CSBU assets for $32.0 million in cash subject to adjustments for net working capital. FranklinCovey invested $1.755 million to purchase a 19.5% voting interest in the new company and made a $1.0 million preferred capital contribution with a 10 percent priority return. The Company also has the opportunity to earn contingent license fees as Franklin Covey Products, LLC achieves certain performance objectives.
FranklinCovey currently intends to utilize the net sale proceeds to repurchase shares of its common stock pursuant to a Dutch auction tender offer, which it anticipates will commence in the fourth quarter of fiscal 2008.
The Company also announced that it will host an investor webinar to discuss with shareholders and the financial community the Company’s financial results for its fiscal quarter and three quarters ended May 31, 2008, the recent sale of the CSBU assets, and to the extent applicable, the proposed self tender offer. The discussion will be held on Friday, July 11, 2008 at 11:00 a.m. Eastern Daylight time (9:00 a.m. Mountain Daylight time).
Interested persons can participate by calling 1-888-396-2356, access code: 88095150 and by logging on to http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=102601 &eventID=1895357.