Ceiling fan companies in takeover battle

Two Texas manufacturers are locked in battle over an unsolicited tender offer that would merge the two companies into one. Litex Industries, of Grand Prairie, Texas, has launched a bid to purchase all the outstanding shares of common stock of Craftmade International, based in Coppell, Texas.

Both companies make or import ceiling fans and lighting fixtures. Craftmade has also expanded into outdoor furniture. The two companies are headquartered just outside of Dallas.   

In its most recent letter to its shareholders, dated March 31, Craftmade recommended that they reject Litex’s offer of $5.25 a share. “Litex has engaged in an aggressive campaign to buy Craftmade at a bargain price,” said the letter, a copy of which is on file with the Securities and Exchange Commission. Craftmade accuses Litex of misrepresenting its willingness to negotiate, its financial difficulties, and its executive compensation.

In a March 31 news release, Litex refutes these claims. It accuses the Craftmade board of directors of putting its own interests before that of the company’s. Litex maintains that $5.25 is a fair per-share value, and it reiterates its tender offer, which expires on April 7.