CSC Generation Submits Proposal to Acquire Flexsteel Industries for $20.80 Per Share in Cash
Summary
We are submitting this new proposal to acquire the Company in order to facilitate constructive discussions with the Board, with the goal of entering into a mutually agreeable Transaction that is in the best interests of all shareholders. When we acquired Sur La Table, the business – like Flexsteel – was predominantly driven by offline sales in physical stores and had struggled to adapt to the online landscape. In just two years, we have evolved Sur La Table into a digitally-centric business, while achieving a majority of sales online and increasing adjusted EBITDA by more than 4x. Based on our experience and today’s post-pandemic environment, we believe transformation is needed at Flexsteel, and that a successful outcome can only be executed as a private business with the additional resources of a digitally native owner like CSC. If upon further due diligence, we become aware of some component or aspect of the business and its prospects that evidences additional value inherent in the Company, we are prepared to increase our proposed price to reflect this new information.