Mace rejects offer, agrees to talk

SSN Staff  - 
Sunday, April 1, 2007

MOUNT LAUREL, N.J.--Mace Security International in late February rejected the $3-per-share buyout offer tendered by Kelly Capital in January (see "Mace offered $46m," in the March issue of Security Systems News.) However, according to an SEC filing, "Kelly Capital has signed a confidentiality agreement with Mace, and is currently conducting due diligence to determine whether it would be willing to offer more than $3 per share."
Mace declared its book value at $3.78 per share in September of 2006, and says its continuing divesture of its car wash business will leave the company with nearly $3 per share of cash on hand and approximately $23.5 million in annual sales from its remaining security division. With 15.28 million shares outstanding, a $4-per-share offer would represent at most a buy of $61 million, depending on the amount of stock Kelly currently holds. Mace, including its car washes, did $64 million in sales in the 12 months prior to its last filing. However, the company's EBIDTA was $1.2 million in the red.
As for the car wash sales, they continue. In February, the company sold off four more car washes for $7.7 million in cash. Roughly a dozen remain to be sold.