Los Angeles, California, Feb. 13 - Overhill Farms, Inc. announced today that it has declined a proposal submitted jointly by GESD Capital Partners and Citicorp Venture Capital to acquire all of the Company's stock for $4.40 per share.
"Overhill Farm's Board has concluded that the most recent offer from GESD-CVC does not reflect the intrinsic value and long-term prospects of the Company," said James Rudis, Chairman and Chief Executive Officer of the custom manufacturer of frozen foods.
"The Board believes that the Company's present performance and its prospects for both immediate and long-term future revenue and profitability growth justify a significantly higher valuation for the Company than any of the proposals received to date," Mr. Rudis said. "Revenues continue to demonstrate significant growth, operating margins have increased for the fourth month in a row, and we anticipate a strong second quarter," Mr. Rudis said.
"The Board continues to have discussions with interested parties and will examine other opportunities, including any future proposals from previously interested parties," Mr. Rudis said. "We believe that the Company's performance over the next several quarters, as well as possible alternative transactions, have the potential to deliver value for our shareholders beyond the current GESD-Citicorp offer."
Overhill Farms is a value-added supplier of custom high quality frozen foods to foodservice, retail and airline customers.