iGo, Inc. (OTC PINK: IGOI) has announced that it has completed the acquisition of Kasco LLC in a share contribution transaction under which Kasco has become a wholly owned subsidiary of iGo, the company said.
Kasco, based in St. Louis and originally founded in 1901, was previously wholly owned by a subsidiary of Steel Partners Holdings L.P. (NYSE: SPLP). Kasco had revenues of USD 56.73 million, operating income of USD 3.35 million, and USD 4.68 million of EBITDA (earnings before interest, taxes, depreciation and amortization) for the 11-month period ended November 30, 2018.
The company manufactures Kasco-brand metallic blade products for the meat, food and wood-cutting industries worldwide. Its management team will remain in place as part of iGo.
The transaction, which was approved by the iGo board, including its independent directors, closed on December 31, 2018. Steel Partners contributed all of its issued and outstanding ownership interests in Kasco to iGo in exchange for 5,000,000 shares of iGo common stock, at a value of USD 3.20 per share, and iGo assumed USD 15 million of Kasco indebtedness, with access to a total of USD 18.5 million in borrowing capacity as part of a revolving credit sub-facility under Steel Partners´ existing USD 700 million credit line.
iGo, Inc. has been a provider of mobile accessories since 1995, offering premium power management solutions and accessories for laptop computers and electronic mobile devices, including universal chargers, batteries and accessories. iGo has been evaluating alternative strategies for uses of its capital and the iGo brand.
Kasco LLC is a provider of metallic blade products for the meat cutting, food cutting, and wood cutting industries to the global market. In addition, Kasco´s Route Distribution provides the US and Canada retail grocery and retail food industries with quality butcher supplies, resupply products and seasonings products. Kasco has global manufacturing and warehouse operations in St. Louis, Mexico, Wales and Pansdorf, Germany. The company is headquartered in St. Louis, MO.