Flexsteel Board of Administrators Unanimously Rejects Unsolicited Proposal from CSC Technology Holdings


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Flexsteel Industries, Inc. introduced that its Board of Administrators, in session with its unbiased monetary and authorized advisors, has unanimously rejected the unsolicited, preliminary non-binding proposal from CSC Technology Holdings, Inc. (“CSC”) to amass Flexsteel for $20.80 per share in money.

“After cautious overview and consideration of CSC’s unsolicited proposal, our Board decided that the proposal considerably undervalues Flexsteel, is opportunistic, and isn’t in the most effective curiosity of the Firm or our shareholders,” mentioned Flexsteel Chairman Thomas M. Levine. “The Board is assured that the administration group’s continued profitable execution of Flexsteel’s strategic plan will generate superior long-term worth for shareholders.”

Flexsteel President and CEO Jerry Dittmer added, “Following one other record-setting gross sales 12 months in fiscal 2022, we proceed to make notable strides in executing our strategic plan, strengthening our provide chain and investing in expertise, product innovation and digital capabilities. As well as, our dedication to driving worthwhile development and continued give attention to working capital administration will allow us to generate robust free money circulate, additional strengthen our stability sheet and spend money on extra long-term development initiatives. By leveraging our monetary power and executing the three legs of our development technique – increasing our gross sales distribution, driving development via new product classes, and increasing into new shopper segments – we’re assured in our capability to navigate macroeconomic headwinds and improve our market share as we ship worth for our clients, enterprise companions and shareholders over time.”

Wells Fargo Securities, LLC is appearing as monetary advisor and Faegre Drinker Biddle & Reath LLP is appearing as authorized advisor to Flexsteel.

About Flexsteel

Flexsteel Industries, Inc., and Subsidiaries (the “Firm”) is among the largest producers, importers, and entrepreneurs of residential furnishings merchandise in the US. Product choices embrace all kinds of furnishings reminiscent of sofas, loveseats, chairs, reclining rocking chairs, swivel rockers, couch beds, convertible bedding items, occasional tables, desks, eating tables and chairs, kitchen storage, bed room furnishings, and outside furnishings. A featured element in many of the upholstered furnishings is a singular metal drop-in seat spring from which the title “Flexsteel” is derived. The Firm distributes its merchandise all through the US via its e-commerce channel and direct gross sales pressure.