Largest Westway (WWAY) Holder Proposes to Acquire Feed Products Biz, Other Assets
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Westway Group, Inc. (Nasdaq: WWAY) has received an unsolicited preliminary offer from ED&F Man, the Company's largest stockholder, to acquire its Westway Feed Products business and certain non-core bulk liquid storage terminals.
James B. Jenkins, Chief Executive Officer of Westway, stated "As the market leader in liquid feed supplements in North America, Westway Feed Products has a strong track record of product innovation and improving financial performance. While we remain committed to this business and believe it has highly attractive future growth prospects, this transaction would serve to further strengthen our balance sheet as well as bolster the Company's liquidity by eliminating Westway's outstanding indebtedness. This substantial increase in financial resources and liquidity would allow us to focus our attention on potential opportunities to create additional stockholder value. As such, we will evaluate ED&F Man's offer and determine the course of action that is in the best interests of the Company and its stockholders."
Westway also announced that its Board of Directors has initiated a process to explore possible strategic alternatives for the Company as a whole, including alternatives for its Westway Terminals business.
Westway's Board of Directors has formed a special committee of independent directors to direct the strategic review process and to evaluate options for Westway Feed Products. The special committee has retained Evercore Partners as financial advisor to assist it during this process.
Westway has not set a definitive timetable for its evaluation of ED&F Man's proposal or completion of the strategic review process and there can be no guarantees that either process will result in a transaction or, if a transaction is undertaken, the terms or timing of such transaction. Westway does not intend to disclose further developments regarding either process unless and until its Board has approved a specific course of action, or it otherwise deems further disclosure is appropriate or required.
James B. Jenkins, Chief Executive Officer of Westway, stated "As the market leader in liquid feed supplements in North America, Westway Feed Products has a strong track record of product innovation and improving financial performance. While we remain committed to this business and believe it has highly attractive future growth prospects, this transaction would serve to further strengthen our balance sheet as well as bolster the Company's liquidity by eliminating Westway's outstanding indebtedness. This substantial increase in financial resources and liquidity would allow us to focus our attention on potential opportunities to create additional stockholder value. As such, we will evaluate ED&F Man's offer and determine the course of action that is in the best interests of the Company and its stockholders."
Westway also announced that its Board of Directors has initiated a process to explore possible strategic alternatives for the Company as a whole, including alternatives for its Westway Terminals business.
Westway's Board of Directors has formed a special committee of independent directors to direct the strategic review process and to evaluate options for Westway Feed Products. The special committee has retained Evercore Partners as financial advisor to assist it during this process.
Westway has not set a definitive timetable for its evaluation of ED&F Man's proposal or completion of the strategic review process and there can be no guarantees that either process will result in a transaction or, if a transaction is undertaken, the terms or timing of such transaction. Westway does not intend to disclose further developments regarding either process unless and until its Board has approved a specific course of action, or it otherwise deems further disclosure is appropriate or required.
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