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The management at Fortune Industries Inc. (AMEX: FFI) plans to buy the firm, the company reported today. Fortune Industries is a provider of professional employer organization services. CEO Tena Mayberry and CFO Randy Butler are part of CEP Inc., a holding company that has entered into a buyout deal with Fortune.
The deal calls for chairman and majority shareholder, Carter Fortune, to sell all his preferred shares to CEP for $12.3 million. Still, Fortune — who presently owns 60 percent of the company — will continue to own 20 percent after the deal.
Fortune Industries will continue to operate under the same name and its business will continue as usual after the merger. Mayberry will continue as CEO and become chair. Fortune will retire as chairman.
The company will withdraw from the NYSE Amex Exchange with its stock moving to a secondary market-quotation service. However, Fortune Industries will no longer have to report to the U.S. Securities and Exchange Commission because the number of shareholders will be below 300.
All shareholders must still vote on the deal, but Fortune has entered into an agreement where he will vote his majority in favor of the sale.
Fortune Industries operates as a PEO in 47 states. It posted revenue of $64.3 million in its last fiscal year ended June 30, 2011.