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Flexsteel rejects takeover proposal by CSC Generation Holdings


Dubuque-based Flexsteel Industries Inc. today announced that its board of directors, in consultation with its independent financial and legal advisers, has unanimously rejected an unsolicited, preliminary nonbinding proposal from CSC Generation Holdings Inc. to acquire Flexsteel for $20.80 per share in cash, a 22% premium to its share price. “After careful review and consideration of CSC’s unsolicited proposal, our Board determined that the proposal substantially undervalues Flexsteel, is opportunistic, and is not in the best interest of the Company or our shareholders,” Flexsteel Chairman Thomas Levine said in a press release. “The Board is confident that the management team’s continued successful execution of Flexsteel’s strategic plan will generate superior long-term value for shareholders.” CSC, based in Merrillville, Ind., describes itself as a technology company that “acquires overlooked store and catalogue-based companies and transforms them into high-performance, digital first brands.” Since CSC’s founding in 2016, it has acquired and successfully integrated a number of well-known brands, such as Sur La Table and One Kings Lane. In its bid for Flexsteel, CSC claimed that Flexsteel’s stock has traded at a substantial discount to its true value for the past several years and will continue to do so under public ownership.

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