30 WESTERN PALLET
ARC Group Worldwide, Inc recently announced its intention to purchase RM2. ARC, a leading global provider of advanced manufacturing, says that it will sell its current operating businesses and assets (Legacy Business Sale) so that it can proceed with the acquisition.
RM2 issues, retrieves, and sanitizes its hygienic IoT pallets annually through a nationwide network of over 30 service facilities . To date, the company has invested more than $60 million into its research and development initiatives. It focuses on industries such as food and other applications where hygiene is of extreme importance.
RM2 embeds autonomous IoT sensor technology in its BLOCKPal™ composite pallets. IoT sensor data are transmitted to the cloud via the LTE-M network, making visible the pallet’s location and condition both indoors and in transit without requiring any additional hardware or information technology development.
“RM2 is in the process of deploying their innovative and proprietary IoT technologies that have the potential to revolutionize durability, dependability, security and digital communications to create transformative efficiencies across the entire continuum of global logistics,” stated Alan Quasha, Chairman of ARC. “We consequently believe undertaking the Legacy Business Sale and pivoting to acquire RM2 can unlock exceptional value for ARC shareholders.”
“We are delighted with the opportunity to partner with ARC in a manner that we believe will accelerate the dynamic growth and expansion of the RM2 business,” added R. Ian Molson, Chairman of RM2.
The Company plans to effectuate the acquisition of RM2 in a share exchange transaction with the principal shareholders of RM2, pursuant to which the shareholders of ARC immediately prior to the transaction will own, in the aggregate, approximately 25.0% to 30.0% of the combined common stock of the Company after closing the RM2 acquisition, subject to adjustments with respect to the treatment of outstanding options and attainment of certain RM2 performance objectives.
ARC has committed to applying approximately $30 million in anticipated net proceeds resulting from the Legacy Business Sale to the business and operations of RM2.
As part of a series of transactions related to the acquisition of RM2 by ARC, a group of existing and new investors to RM2, including PMB Invest Fund I SCSp, Everest Hill Group Inc., and two other prominent investors, are expected to invest approximately $20 million into RM2 to fund the Company’s growth.
Dizzying Pace of M & A
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