FranklinCovey Announces Completion of the Sale of Its Consumer
Solutions Business Unit and an Investor Webinar to Be Held on July 11,
2008
FranklinCovey to Use Proceeds From Sale to Repurchase Common Stock
SALT LAKE CITY (Business Wire EON) July 7, 2008 --
FranklinCovey (NYSE: FC) today announced that it has completed its
previously announced sale of substantially all of the assets of its
Consumer Solutions Business Unit (CSBU) to Franklin Covey Products, LLC.
Franklin Covey Products, LLC, which is controlled by Peterson Partners,
a private equity firm, purchased the CSBU assets for $32.0 million in
cash subject to adjustments for net working capital. FranklinCovey
invested $1.755 million to purchase a 19.5% voting interest in the new
company and made a $1.0 million preferred capital contribution with a 10
percent priority return. The Company also has the opportunity to earn
contingent license fees as Franklin Covey Products, LLC achieves certain
performance objectives.
FranklinCovey currently intends to utilize the net sale proceeds to
repurchase shares of its common stock pursuant to a Dutch auction tender
offer, which it anticipates will commence in the fourth quarter of
fiscal 2008.
Investor Webinar
The Company also announced that it will host an investor webinar to
discuss with shareholders and the financial community the Company’s
financial results for its fiscal quarter and three quarters ended May
31, 2008, the recent sale of the CSBU assets, and to the extent
applicable, the proposed self tender offer. The discussion will be held
on Friday, July 11, 2008 at 11:00 a.m. Eastern Daylight time (9:00 a.m.
Mountain Daylight time).
Interested persons can participate by calling 1-888-396-2356, access
code: 88095150 and by logging on to http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=102601
&eventID=1895357.
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Internet browser's address field. Remove the extra space if one exists.)
About FranklinCovey
FranklinCovey (NYSE: FC) is the global consulting and training leader in
the areas of strategy execution, customer loyalty, leadership and
individual effectiveness. Clients include 90 percent of the Fortune 100,
more than 75 percent of the Fortune 500, thousands of small- and
mid-sized businesses, as well as numerous government entities and
educational institutions. FranklinCovey (www.franklincovey.com)
has 46 direct and licensee offices providing professional services in
147 countries.
About Peterson Partners
Peterson Partners, a leading Intermountain West investment firm based in
Salt Lake City, Utah, specializes in investing in small- to mid-sized
companies, and has a track record of successful investments including
JetBlue, Making Memories, EnergySolutions, 3form, Cranium, Asurion,
Instashred, Winder Farms, MITY Enterprises, and Diamond Rental. Founded
in 1995, Peterson Partners has managed over $400 million in committed
capital through five funds.
Forward-Looking Statements
This press release contains forward-looking statements related to, among
other things, a proposed tender offer. These statements are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Investors are cautioned that
forward-looking statements inherently involve risks and uncertainties
that could cause actual results to differ materially from those
contemplated in the forward-looking statements. Such risks and
uncertainties include, but are not limited to, the Company may decide,
for any number of reasons, not to pursue the tender offer, the
conditions to any such tender offer may not be satisfied, market
conditions and the price of the Company’s
stock may not be favorable, general economic conditions, the Company’s
cash needs, shareholders may not tender shares in response to the offer
in sufficient numbers to make the tender offer advisable and other risks
and uncertainties outlined in the Company’s
documents filed with the SEC, including the Company’s
most recent annual report on Form 10-K for the fiscal year ended August
31, 2007 as filed with the Securities and Exchange Commission. All
forward-looking statements and other information in this press release
are based upon information available as of the date of this press
release. Such information may change or become invalid after the date of
this press release, and, by making these forward-looking statements, the
Company undertakes no obligation to update these statements after the
date of this press release, except as required by law.
Tender Offer Statement
This press release is for informational purposes only and is not an
offer to buy, or the solicitation of an offer to sell, any shares. The
full details of any tender offer, including complete instructions on how
to tender shares, will be included in the offer to purchase, the letter
of transmittal and related materials, which would be mailed to
shareholders promptly following commencement of the offer. Shareholders
should read carefully the offer to purchase, the letter of transmittal
and other related materials when they are available because they will
contain important information. Shareholders may obtain free copies, when
available, of the offer to purchase and other related materials that
will be filed by FranklinCovey with the Securities and Exchange
Commission at the Commission’s website at www.sec.gov.
When available, shareholders also may obtain a copy of these documents,
free of charge, from FranklinCovey’s
information agent to be appointed in connection with the offer.
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