Alternative Asset Management Acquisition Corp. to Acquire Great American Group, LLC
14 Maio 2009 - 9:11AM
PR Newswire (US)
One of North America's Leading Asset Disposition Firms NEW YORK and
WOODLAND HILLS, Calif., May 14 /PRNewswire-FirstCall/ --
Alternative Asset Management Acquisition Corp. (NYSE Amex: Units:
"AMV.U," Common Stock: "AMV," Warrants: "AMV.WS") ("AAMAC") and
privately-held Great American Group, LLC ("Great American") today
jointly announced that they have entered into an Agreement and Plan
of Reorganization (the "Agreement"), pursuant to which Great
American will be acquired by Great American Group, Inc., a
newly-formed Delaware corporation and wholly-owned subsidiary of
AAMAC ("GA"). The transaction is expected to close in July 2009.
AAMAC is a special purpose acquisition company. Great American is a
leading provider of asset disposition and valuation and advisory
services to a wide range of retail, wholesale and industrial
clients, as well as lenders, capital providers and professional
service firms. Great American has participated in liquidations and
auctions of assets approximating $30 billion since 1995. The senior
management of Great American, which has more than 100 years of
combined experience in the auction, liquidation and valuation
industries, and which is led by Chairman Harvey Yellen and Chief
Executive Officer Andrew Gumaer, will serve as senior management of
GA following the Acquisition. Under the terms of the Agreement, GA
will acquire AAMAC and Great American through a structured
acquisition valued at closing at approximately $305.0 million based
upon a fully distributed enterprise value (the "Acquisition").
Following the Acquisition, AAMAC and Great American will be
wholly-owned subsidiaries of GA and AAMAC's common stock, warrants
and units will cease trading on the NYSE Amex. Andrew Gumaer, Great
American's Chief Executive Officer, stated, "Our new position as a
public company will provide us with capital to fuel future growth
initiatives and will further incentivize our team members and
enhance our recruiting efforts. While many people may think of our
business as cyclical, it is in fact a growing business in the U.S.
and there are a number of opportunities to pursue." "Great American
has proven through its growth that it has the history, scale,
investment and risk management processes, operational
infrastructure and capacity to continue to lead in the asset
disposition and valuation sectors and to attract the largest and
best financial institutions for its appraisal business," said
Michael Levitt, AAMAC's Chairman. "We were especially attracted by
Great American's strong management team which has demonstrated a
proven ability to identify new opportunities and successfully
execute on those initiatives to consistently grow the business. We
believe this transaction will benefit all parties by enabling Great
American to access the public market and further achieve its
strategic objectives at an attractive valuation for AAMAC's public
stockholders." Including the 2009 earnout consideration, GA's fully
distributed enterprise value is estimated at 8.1 times GA's 2009
EBITDA earnout target of $45 million. In connection with the
Acquisition, the members of Great American (the "Members") will
receive $120.0 million in cash and an aggregate of 12,272,727
shares of GA (the "Stock Consideration"). The Members are also
entitled to receive an additional $25.0 million in cash and,
together with certain phantom equityholders of Great American, are
entitled to receive up to 10.0 million shares of GA's common stock
in the event GA achieves certain EBITDA targets. The Stock
Consideration will be subject to a four-year lock-up period during
which 25% of the Stock Consideration will be released on each
succeeding anniversary of the closing date of the Acquisition. In
addition, 2.5 million shares of the Stock Consideration will be
deposited into an escrow account to satisfy any indemnification
claims or any shortfalls in Great American's working capital
target, and 2.2 million of such shares will also be subject to
recall by GA to the extent of any shortfall in the value of certain
inventory, as described in the Agreement. The initial stockholders
of AAMAC have agreed that the 7.5 million shares of GA's common
stock which they will receive in exchange for a like number of
shares of AAMAC common stock issued prior to AAMAC's initial public
offering which is currently held in escrow will continue to be
subject to the restrictions on disbursements as provided in the
escrow agreement entered into by AAMAC's initial stockholders in
connection with AAMAC's initial public offering. 3.0 million of
such shares will be released from escrow on the first anniversary
of the closing date of the Acquisition and 4.5 million of such
shares will continue to be held in escrow until GA's achievement of
certain EBITDA targets. 2.85 million shares of AAMAC's common stock
owned by AAMAC's initial stockholders will be cancelled upon the
consummation of the Acquisition. Upon the consummation of the
Acquisition, GA's Board of Directors (the "Board") will be
comprised of seven members. AAMAC will be entitled to designate
three directors to the Board, at least two of whom will be
independent. Great American will be entitled to designate four
directors to the Board, at least two of whom will be independent.
It is expected that AAMAC will designate Mark Klein and Michael
Levitt to serve as directors of GA, and that Great American will
designate Mr. Gumaer and Mr. Yellen to serve as directors of GA.
AAMAC intends to call a special meeting of its stockholders to seek
approval of the Acquisition. AAMAC will also call a special meeting
of its warrantholders to seek approval of a proposal to amend the
agreement governing its outstanding warrants (the "Warrant
Agreement") to permit AAMAC to redeem all of its issued and
outstanding warrants for $0.50 per warrant in connection with and
upon the consummation of the Acquisition and the related
transactions (the "Warrant Redemption"). If the amendment to the
Warrant Agreement is not approved and the Warrant Redemption is not
consummated, all of AAMAC's outstanding warrants (including
warrants underlying units) will become exercisable for shares of GA
common stock following the Acquisition. In connection with the
Acquisition, AAMAC will file with the Securities and Exchange
Commission a proxy statement in connection with the special
meetings of its stockholders and warrantholders (the "Proxy
Statement") and GA will file with the Securities and Exchange
Commission a registration statement on Form S-4 (the "Registration
Statement") to register the securities of GA to be issued to the
securityholders of AAMAC. The Proxy Statement and the Registration
Statement will include a joint proxy statement/prospectus, which
will be sent to the stockholders and warrantholders of AAMAC,
seeking their approval of, among other things, the Acquisition and
the amendment to the Warrant Agreement. The consummation of the
Acquisition is subject to the review and the declaration of
effectiveness of the Registration Statement by the Securities and
Exchange Commission, the approval of the Acquisition by AAMAC's
stockholders and other customary closing conditions. It is also
subject to holders of less than 30% of AAMAC's shares issued in its
initial public offering voting against the transaction and electing
to exercise their conversion rights. GA intends to apply to have
its common stock (and, if the Warrant Redemption is not
consummated, its warrants and units) trade on the NYSE Amex.
Citigroup Global Markets Inc. and Financo, Inc. have served as
financial advisors to AAMAC and Barrington Associates and B. Riley
& Co. have served as financial advisors to Great American with
respect to the Acquisition. Ellenoff Grossman & Schole LLP is
serving as legal counsel for AAMAC. Paul, Hastings, Janofsky &
Walker LLP is serving as legal counsel for Great American and
Graubard Miller is serving as special counsel to Great American.
Hand Baldachin & Amburgey LLP is serving as legal counsel for
Financo, Inc. Additional information regarding Great American, the
Acquisition and the related transactions will be available on the
Form 8-K to be filed by AAMAC, a copy of which may be obtained
without charge, at the Securities and Exchange Commission's website
at http://www.sec.gov/. Great American's website is
http://www.greatamerican.com/. About Alternative Asset Management
Acquisition Corp. AAMAC is a blank check company which was formed
in 2007 for the purpose of acquiring through a merger, capital
stock exchange, asset acquisition, stock purchase, reorganization
or similar business combination one or more businesses or assets.
AAMAC's initial public offering was consummated on August 7, 2007
and it received net proceeds of $397,560,377 through the sale of
41.4 million units, including 5.4 million units pursuant to the
underwriters' over-allotment option, at $10.00 per unit. Each unit
is comprised of one share of AAMAC common stock and one warrant
with an exercise price of $7.50. As of March 31, 2009, AAMAC held
$407.6 million (or approximately $9.84 per share) in a trust
account maintained by an independent trustee, which will be
released upon the consummation of the Acquisition. About Great
American Group, LLC Great American is a leading provider of asset
disposition and valuation and advisory services to a wide range of
retail, wholesale and industrial clients, as well as lenders,
capital providers and professional service firms. Originally
founded in 1973, Great American was organized as a limited
liability company in 2002. Forward Looking Statements This press
release may contain forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995 regarding
AAMAC, Great American, and GA's business after completion of the
proposed transactions. Forward-looking statements are statements
that are not historical facts. Such forward-looking statements,
which are based upon the current beliefs and expectations of the
management of AAMAC and Great American, are subject to risks and
uncertainties, which could cause actual results to differ from the
forward-looking statements. The following factors, among others,
could cause actual results to differ from those set forth in the
forward-looking statements: changing interpretations of generally
accepted accounting principles, continued compliance with
government regulations, changing legislation or regulatory
environments, requirements or changes affecting the business in
which Great American is, and GA will be, engaged, management of
rapid growth, intensity of competition, general economic
conditions, as well as other relevant risks detailed in AAMAC's
filings with the Securities and Exchange Commission and the filings
to be made by GA with the Securities and Exchange Commission. The
information set forth herein should be read in light of such risks.
None of AAMAC, Great American or GA assumes any obligation to
update the information contained in this release. Additional
Information and Where to Find It This press release is being made
pursuant to and in compliance with Rules 145, 165 and 425 of the
Securities Act of 1933, as amended, and does not constitute an
offer of any securities for sale or a solicitation of an offer to
buy any securities. AAMAC, Great American, GA and their respective
directors and officers may be deemed to be participants in the
solicitation of proxies for the special meetings of AAMAC's
stockholders and AAMAC's warrantholders to be held to approve the
transactions described herein. The underwriters of AAMAC's initial
public offering may provide assistance to AAMAC, Great American, GA
and their respective directors and executive officers, and may be
deemed to be participants in the solicitation of proxies. A
substantial portion of the underwriters' fees relating to AAMAC's
initial public offering were deferred pending stockholder approval
of AAMAC's initial business combination, and stockholders are
advised that the underwriters have a financial interest in the
successful outcome of the proxy solicitation. In connection with
the proposed Acquisition and amendment to the Warrant Agreement,
AAMAC will file with the Securities and Exchange Commission a
preliminary proxy statement/prospectus and a definitive proxy
statement/prospectus. AAMAC's stockholders and warrantholders are
advised to read, when available, the proxy statement/prospectus and
other documents filed with the Securities and Exchange Commission
in connection with the solicitation of proxies for the special
meeting because these documents will contain important information.
The definitive proxy statement/prospectus will be mailed to AAMAC's
stockholders and warrantholders as of a record date to be
established for voting on the Acquisition and the amendment to the
Warrant Agreement. AAMAC's stockholders and warrantholders will
also be able to obtain a copy of the proxy statement/prospectus,
without charge, by directing a request to: Alternative Asset
Management Acquisition Corp., 590 Madison Avenue, 35th Floor, New
York, New York 10022. The preliminary proxy statement/prospectus
and definitive proxy statement/prospectus, once available, can also
be obtained, without charge, at the Securities and Exchange
Commission's website at http://www.sec.gov/. Contacts: Alternative
Asset Management Acquisition Corp. Contact: Chris Tofalli Chris
Tofalli Public Relations, LLC (914) 834-4334 Great American Group,
LLC Contact: Laura Wayman 847-444-1400 ext 312 DATASOURCE:
Alternative Asset Management Acquisition Corp. CONTACT: Chris
Tofalli, Chris Tofalli Public Relations, LLC, for Alternative Asset
Management Acquisition Corp., +1-914-834-4334, ; Laura Wayman,
Great American Group, LLC, +1-847-444-1400 ext 312, Web Site:
http://www.greatamerican.com/
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