P. Michael Coleman, cofounder, chairman and largest shareholder of Integrity Media, has made an offer to take the Christian music and book publishing company private.
Coleman, who owns 58% of Integrity's stock, is offering $6.25 per share for all outstanding shares. Hurt by the soft retail environment in the CBA market, Integrity's stock price hit a 52-week low of $3.30 on October 6 and was selling at $3.57 per share before Coleman's announcement on November 21; it closed at a 52-week high of $5.94 on the 21st. Under the proposal, key Integrity executives would retain an equity position in the company. And to prevent any possible outside offers, Coleman said he will not sell his stake to a third party.
For the nine-month period ended September 30, total sales at the company increased 7%, to $53.3 million, but net income fell to $1.2 million from $1.6 million. The company's book operation, which released its first title in last year's third period, reported sales of $5.3 million for the nine months, up from $2.4 million; third-quarter sales were just under $3 million this year.
