by Clive Young.
Woodinville, WA (November 6, 2008)–Loud Technologies, Inc. announced a reorganization of its marketing, sales and engineering functions on Wednesday, November 5; the news came two days after Sun Mackie, LLC. offered a private buyout of the remaining 23.8 percent of Loud stock that it doesn’t already own.
In a filing Monday, Sun Mackie offered $1.45 in cash per share of common stock–a 45 percent premium over the October 31, 2008 closing price of $1.00. The filing noted, “We believe the Transaction provides the Company’s shareholders an opportunity for certainty in the value of their shares, as well as liquidity with respect to their shares–opportunities we believe the shareholders would not otherwise be able to obtain in light of the recent market volatility, coupled with the Company’s small public float and limited trading volume.”
Loud’s stock price has seen a steady decline this year, trading at a year-to-date highpoint of $7.70 on January 24. However, the stock briefly spiked to $1.70 on Wednesday, upon news of the reorganization–news that was released two days after the offer.
The reorganization is expected to cut 90 full-time positions by year’s end through cutbacks in engineering, a move to independent sales reps, and alterations to the marketing and planning functions for the MI and Pro sides of Loud. In a statement, the company declared:
“…product strategy, development and marketing for the company’s MI and Pro businesses will be managed by separate, dedicated product management teams, while marketing communications for all Loud brands will be consolidated and managed by a shared marketing support team. The Company’s worldwide engineering resources will be scaled accordingly to support a more focused product development schedule. Loud will also move North American sales from its current captive sales force to a group of independent sales representation firms and consolidate portions of its international sales force.”
Loud Technologies Inc.