electronics

Monomoy Capital Partners has successfully completed its tender offer for the common stock of Cobra Electronics Corporation at a price of $4.30 per share. Immediately upon the closing of the tender offer, Monomoy completed a merger transaction to take Cobra private and add Cobra to the Monomoy portfolio of companies.

Cobra Electronics (NASDAQ: COBR) is a designer and marketer of communication and navigation products. The company’s principal Cobra division markets CB and marine radios, two-way radios, radar detectors, power inverters, jump-starters, and GPS navigation systems for drivers under the Cobra brand.  The firm’s Performance Products division sells personal navigation systems and speed camera location detectors under the Snooper name. Cobra Electronics also manages the AURA database of photo-enforcement locations (including speed camera and red-light detector positions) in North America and Europe. Cobra’s products are sold in the US, Canada, and Europe through consumer electronics stores, discount retailers, and truck stops.  The company was founded in 1961 and is based in Chicago (www.cobra.com).

Monomoy will focus on improving margins and cash flow while supporting and growing its core business.  “We are thrilled to add Cobra to our consumer electronics portfolio,” said Justin Hillenbrand, Monomoy’s Co-Chief Executive Officer. “Cobra has a market-leading brand and a well-deserved reputation for delivering quality products. We look forward to working with the Cobra team to build a thriving business.”

Monomoy Capital Partners makes control investments in middle market businesses with $50 million to $500 million in annual sales. Sectors of interest include manufacturing, distribution, consumer product and foodservice industries. Over the past five years, Monomoy has closed 43 middle market acquisitions. Its portfolio companies generate over $1.2 billion in combined sales and employ more than 6,000 people across four continents.  The firm has $700 million in assets under management and is headquartered in New York (www.mcpfunds.com).

Monomoy’s acquisition of Cobra marks the firm’s third middle market investment over the past three months, following its acquisition of American Textile Industries (June 2014) and Continental-Midland Group (July 2014).

2014 PEPD • Private Equity’s Leading News Magazine • 10-9-14

Cobra and Monomoy Capital Partners have reached an agreement for Monomoy to acquire all of the outstanding shares of common stock of Cobra Electronics at $4.30 per share in cash. The transaction is expected to close in the fourth quarter of this year.

“We are thrilled to add Cobra’s market leading products to the Monomoy portfolio,” said Justin Hillenbrand, Co-CEO of Monomoy. “We look forward to working with Cobra’s team members, suppliers and customers for many years to come.”

Cobra Electronics is a designer and marketer of communication and navigation products. The company’s principal Cobra division markets CB and marine radios, two-way radios, radar detectors, power inverters, jump-starters, and GPS navigation systems for drivers under the Cobra brand.  The firm’s Performance Products division sells personal navigation systems and speed camera location detectors under the Snooper name. Cobra Electronics also manages the AURA database of photo-enforcement locations (including speed camera and red-light detector positions) in North America and Europe. Cobra’s products are sold in the US, Canada, and Europe through consumer electronics stores, discount retailers, and truck stops.  The company was founded in 1961 and is based in Chicago (www.cobra.com).

“This transaction will deliver to Cobra Electronics’ shareholders certainty of value and liquidity in the form of a cash payment immediately upon closing,” said Jim Bazet, Chairman and Chief Executive Officer of Cobra Electronics.  “We are excited to work with Monomoy as this transaction marks the next stage in the evolution of the Cobra brand.”

Monomoy Capital Partners makes control investments in middle market businesses with $50 million to $500 million in annual sales. Sectors of interest include manufacturing, distribution, consumer product and foodservice industries. Over the past five years, Monomoy has closed 43 middle market acquisitions. Its portfolio companies generate over $1.2 billion in combined sales and employ more than 6,000 people across four continents.  The firm has $700 million in assets under management and is headquartered in New York (www.mcpfunds.com).

William Blair & Co. acted as financial advisor, and Sidley Austin acted as legal advisor to Cobra Electronics.  Houlihan Lokey acted as financial advisor, and Kirkland & Ellis acted as legal advisor to Monomoy Capital Partners.

© 2014 PEPD • Private Equity’s Leading News Magazine • 8-28-14