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Professional employer organization Fortune Industries Inc. (NYSE MKT: FFI) will pursue a plan for a management-led buyout that will take the company private. It terminated a proposed deal with Ide Management Group announced in September.
The Ide deal would have taken the PEO operations private but allowed the firm to continue to be publicly traded as an operator of skilled nursing facilities.
“We had a deal for a management-led leveraged buyout that was announced back in March of last year that was always still going to be a part of the deal,” said Carrie Hill, Fortune’s general counsel and secretary. “Ide Management came into that deal with CEP, which was the management-owned company that Fortune is working with, and that deal hasn’t been cancelled.”
Read Staffing Industry Analysts' story on the management-led buyout here.
With Ide out of the picture, Fortune will focus on the original buyout deal.
“The company anticipates that it will cease to be a publicly traded company after the closing of the merger,” said Hill. “We hope to have a closing sometime in the next three to six months.”