Orem's Mity OKs purchase

Orem-based Mity Enterprises Inc. said Thursday it has agreed to be acquired by two Utah private equity firms in a deal valued at about $75 million.

The buyers, Utah-based Sorenson Capital and Peterson Partners, say they will take the company private again and focus on its growth.

Under the terms of the agreement, the holders of Mity common stock will receive $21.50 in cash for each of their shares, which represents about a 9 percent premium above the company's closing price Wednesday and is higher than Mity's shares have ever traded.

Mity's stock closed Thursday up $1.45 at $21.13 per share.

Over the years, more than 30 firms, both strategic and financial, have expressed interest in Mity, said Gregory Wilson, Mity chairman, during a teleconference Thursday. Over the past half-year, the process evolved into an auction-like affair, with Mity both receiving and soliciting bids.

The winners "offered the best overall package that made sense for shareholders, for the company and for customers going

forward," according to Bradley T. Nielson, Mity's president and chief executive officer.

"They were selected based on their ability to close a deal, to finance a deal, to put the whole package together," Nielson said.

For their part, Sorenson and Peterson say they plan to focus on growing the company as a private firm, maintaining existing staff and management.

Mity "is a Utah company, which we love to invest in, to create opportunities for employment and growth here in the Utah economy," said Fraser Bullock, co-founder and a managing director of Sorenson Capital. "The company has a very good brand. It's well-known in the industry and is a base we think we can continue to build on going forward.

"Over time, we plan on continuing to grow the capabilities of the leadership team, and we may add some people along the way. But we're excited about the people we have there today. We are not planning on any cutbacks."

Founded in 1987, Mity makes institutional furniture products for niche markets, including multipurpose room furniture and seating for health-care facilities. The company went public in 1994, and since that time it has been ranked five times on Forbes magazine's "200 Best Small Companies in America" list.