The rumor was that Ford was going to acquire APCO. In this case, the rumor turned out to be true:
biz.yahoo.com
Thursday June 10, 4:59 pm Eastern Time
Company Press Release
SOURCE: Ford Motor Company
Ford Motor Company Reaches Agreement to Buy Automobile Protection
Corporation
DEARBORN, Mich., June 10 /PRNewswire/ -- Ford Motor Company (NYSE: F -
news) and Automobile Protection Corporation (APCO) (Nasdaq: APCO - news
), a premier all-makes extended service contract provider, have reached
a definitive agreement for Ford to acquire APCO for $13.00 per share in
cash.
APCO's core business is the marketing and administration of the
EasyCare® Certified Pre-Owned Vehicle Merchandising Program and EasyCare
Vehicle Service Contracts, sold primarily through car and truck
dealerships. APCO also administers warranty and service contract
products under private labels.
''APCO is a nationally recognized company that has earned a top-tier
position in the all-makes extended service contract market,'' said Mike
Jordan, vice president, Ford Customer Service Division (FCSD). ''We're
pleased to add EasyCare to Ford Motor Company's portfolio of brands.
''This acquisition is directly aligned with Ford's goal of becoming the
leading consumer company that provides automotive products and services,
and it represents another significant step in FCSD's efforts to become
the number one aftersales and service operation in the world.''
Headquartered in Atlanta, Georgia, APCO has 200 employees. The company
will retain its current officers, employees and independent sales
representatives.
''APCO has a highly skilled and nimble management team with an
outstanding track record of growth, effective operating systems and
best-in-class customer service,'' Jordan said. ''And APCO's leaders
demonstrate the new entrepreneurial spirit taking hold at Ford.''
Ford Motor Company has agreed to commence a tender offer for all of the
outstanding shares of APCO common stock at a purchase price of $13.00
per share. The total amount of the tender offer is approximately $180
million.
This transaction is subject to regulatory approval and the valid tender
of a majority of APCO's shares, as well as other customary conditions.
The directors of APCO are unanimously recommending that all APCO
shareholders accept Ford's offer. APCO's founders and largest
shareholders, Martin Blank and Larry Dorfman, have agreed to tender
their shares and support the transaction.
''The proposed merger with Ford Motor Company represents good value for
our stockholders, outstanding marketing opportunities for our agents,
security for our employees and strong growth opportunities for both
companies,'' said Larry Dorfman, president and chief executive officer
of APCO.
''Being able to operate independently while having the full backing of
Ford will place us in a unique and favorable position in the
marketplace,'' Dorfman continued. ''We will continue to operate the way
we do today, and will serve present and future clients with the same
industry-leading level of service we have become known for.''
Ford Motor Company is the world's second largest automaker. Its
automotive brands include Aston Martin, Ford, Jaguar, Lincoln, Mazda,
Mercury and Volvo. Its automotive-related services include Ford Credit,
Quality Care, Hertz and Visteon Automotive Systems.
SOURCE: Ford Motor Company |
