R.G. Barry Q3 Profit Surges; Agrees To Go Private In $215 Mln Deal - Quick Facts

(RTTNews) - Accessories marketer R.G. Barry Corp. (DFZ) Friday reported that its third-quarter net earnings climbed 66.2 percent to $2.56 million or $0.22 per share from last year's $1.54 million or $0.13 per share. The latest results included a $2.4 million non-taxable gain related to the death benefit of insurance policies on the life of former Chairman, Gordon Zacks, who died Feb. 1, 2014.

Net sales grew 4.6 percent to $26.13 million from $25.80 million a year ago.

The company also announced that it has agreed to be acquired by private investment firm Mill Road Capital for $19 per share in cash, reflecting an equity value of approximately $215 million.

The merger will result in R.G. Barry becoming a wholly-owned subsidiary of a newly-formed corporation controlled by Mill Road.

The company noted that the per share cash merger price represents a premium of 18 percent compared to the 30-day average price of the stock prior to the announcement of Mill Road's initial proposal on September 11, and is 67 percent higher than the 52-week low and 6 percent higher than the 52-week high, prior to the announcement. The R.G. Barry Board of Directors unanimously approved the deal, which is subject to customary closing conditions.

Mill Road also entered into a voting agreement to vote its 9.8 percent stake in R.G. Barry in favor of the transaction. The merger is expected to close during the third calendar quarter of 2014.

R.G. Barry also announced that its Board of Directors, as required by the merger agreement, has suspended the payment of the regular quarterly dividend so long as the merger agreement is in effect.

In pre-market activity, R.G. Barry shares are currently trading at $19, up $0.90 or 4.97 percent.