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Indianapolis-based Fortune Industries Inc.’s (NYSE MKT: FFI) shareholders voted in favor of a proposal to go private under a management buyout plan at a special meeting last week. The professional employer organization (PEO) will become a majority-owned subsidiary of CEP Inc., a Tennessee corporation that includes Fortune’s CEO Tena Mayberry and CFO Randy Butler.
Read about the plan here.
As a result of the merger transaction, which is expected to take effect July 1, the company will reduce its record shareholder count to below 300, will cease being an SEC reporting company and voluntarily delist from the NYSE MKT. Fortune anticipates that by delisting, it will eliminate approximately $150,000 in compliance costs annually.
Fortune Industries operates as a professional employer organization in 47 states. Its revenue fell 7.2 percent to $14.9 million in its fiscal third quarter ended March 31, 2013, compared to $16.0 million in the same quarter in the previous year.