Material Sciences Corp to be Acquired by Affiliate of New Star Metals

ELK GROVE VILLAGE, Ill.–(BUSINESS WIRE)–Material Sciences Corporation, a leading provider of material-based solutions for acoustical and coated applications, announced today that it has entered into a definitive merger agreement with Zink Acquisition Holdings Inc. (“Parent”) and Zink Acquisition Merger Sub Inc. (“Merger Sub”), which are affiliates of New Star Metals Inc. and Insight Equity Holdings LLC, a private equity firm headquartered in Southlake, Texas. Pursuant to the merger agreement, Parent will acquire all of the outstanding shares of common stock of MSC for $12.75 per share in cash, representing a fully diluted equity value of approximately $139 million. The $12.75 per share price represents a premium of approximately 13.6% over the closing price of $11.22 on January 8, 2014 and 27.6% over the volume-weighted average share price during the 90-day period prior January 8, 2014.

“The Board of Directors and I have great confidence that this deal represents the best interests of our stockholders, company and employees,” said Cliff Nastas, Material Sciences Corporation’s Chief Executive Officer. “It should be pointed out that this transaction is a direct reflection of the hard work, dedication and sacrifice that each MSC employee has made for the continued success of the Company over many years. We are excited to combine with New Star Metals under Insight Equity’s ownership to grow the business and better serve our customers.”