Waukegan, Ill.-based Coleman Cable (Nasdaq: CCIX) and Technology Research Corp. (Nasdaq: TRCI), based in Clearwater, Fla., announced a definitive merger agreement in which Coleman will acquire all of the outstanding shares of TRC for $7.20 per share in cash, in a transaction valued at approximately $51.5 million on a fully diluted basis. The cash consideration represents a premium of approximately 84.6 percent to TRC's closing share price on January 14, 2011, the last trading day before TRC announced its receipt of Coleman's indication of interest. Coleman will fund the deal with cash on hand and existing borrowing facilities.
Coleman's original offer of $5.50 per share was already a 46 percent premium over TRC's stock price at the time. TRC CEO Owen Farren's departure and the sweeter offer appear to have swung the balance, winning the approval of TRC's board.