Sleazeball Coon cashes out

[drk]

"1-800 CONTACTS to be Acquired by Fenway Partners


DRAPER, Utah, June 4, 2007 /PRNewswire-FirstCall/ -- 1-800 CONTACTS, INC. (Nasdaq: CTAC) (the “Company”) today announced that it has entered into a definitive merger agreement with affiliates of Fenway Partners, LLC pursuant to which Fenway Partners will acquire 1-800 CONTACTS for $24.25 per share, representing a premium of approximately 21 percent over the June 1, 2007 closing share price of $20.08 and a premium of approximately 34 percent over the average closing share price during the 30 trading days ending June 1, 2007. The total value of the transaction is approximately $340 million."

Rot in hell, Coon. Have a nice day. :)

[For-Life]

Paying a premium on nothing?

Wow, honestly it is ridiculous how bad these companies do and how well they are sold for.

[Andrew Weiss]

Aside from the outsized money involved in this deal, take a look at who'll be in charge of 1800Contacts:

Fenway Partners is a NYC-based equity management company. All of their "team" members have backgrounds exclusively in equity management, many through stock brokerage houses. Their orientation is clearly bottom-line. Here's an excerpt from their philosophy:

"Fenway's investment strategy is to sponsor companies with leading franchises that offer significant opportunities for value creation through growth and improvements in operating performance. We work in partnership with management teams to increase the fundamental value of portfolio companies by developing and executing growth strategies, and leveraging our investment experience, operating skills and relationship network.

Our practice of establishing a stable financial platform with a strong equity base and a conservative capital structure allows portfolio companies the flexibility to aggressively pursue long-term strategic plans and finance add-on acquisitions, as well as the capacity to withstand competitive pressures and economic downturns. Our prudent investment approach allows us to meet commitments in difficult times and increase the likelihood of successful execution of portfolio company strategies in economic downturns."

Clearly they're going to try to "grow" 1800Contacts. I would not expect them to be any more of a "level-field" competitor than the previous management. If anything, they could be more aggressive.

[drk]

I thought of that too, Andrew.

Fortunately, the "warm and fuzzy" success story from David (college-student-turned-multimillionaire-entrepreuneur) vs. Goliath (you and I, ironically) will be ended. He got way too much play with the FTC. It'll be difficult to recreate the (temporary!) legislative successes they've had...

...but Coon is sipping a Mai Tai and getting his back rubbed by the cabana boy, so he doesn't need to care...

[Fezz]

I sure hope our dear friend and contact; Brad Scott, will keep his job!


;) :cheers: ;)

[drk]

Cabana boy.

[DragonLensmanWV]

Cabana boy.

Now, if only we could figure out how drk feels about this affair.:D