Blount investor takes issue with sale of company

Lake Oswego group with 500,000 shares in Milwaukie manufacturer says deal is “beneficial only for the management team.”

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One major investor in Blount is not happy with the company’s recent sale to a private equity firm.

The president of Pacific Ridge, a Lake Oswego group with 500,000 shares in the Milwaukie manufacturer, says the deal is “beneficial only for the management team of Blount, and is a terrible deal for shareholders.”

Blount’s stock has been badly depressed for most of the year, crippled by the strong U.S. dollar, weak economies overseas and and a cyclical downturn in demand for its agricultural products. Sales were down 12 percent through the first nine months of the year.

Pacific Ridge – which owns 1 percent of Blount’s stock – argues that downturn is temporary, and that the company owes it to long-term shareholders to be patient. The firm values Blount at $16 a share based on the firm’s growth forecasts and projected cash flow.

Blount’s buyers are American Securities and P2 Capital Partners; the latter already owns 16 percent of the company. Terms of the deal call for Blount executives to invest their own proceeds from the transaction into the company.


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