Scott’s Liquid Gold, Inc. (SLGD) is set to merge with Horizon Kinetics LLC in an all-stock transaction, according to an announcement made by Scott’s Liquid Gold today. The merger will combine the investment management expertise of Horizon Kinetics with Scott’s Liquid Gold’s assets under management. Murray Stahl, Co-Founder and CEO of Horizon Kinetics, is expected to take on the role of CEO for the newly formed entity.
Under the terms of the merger agreement, Scott’s Liquid Gold will issue a number of shares to the current owners of Horizon Kinetics based on the net tangible assets of Horizon Kinetics at the time of the transaction, plus $200 million. The value of Horizon Kinetics’ operating asset management business will also be taken into account, assuming its assets under management are between $6 billion and $8 billion. The consideration will be divided by $1.25.
The merger is seen as an opportunity to create significant shareholder value for both companies. Dan Roller, Founder of Maran Capital Management and Chairman of the Board of Scott’s Liquid Gold, expressed excitement over the partnership with Horizon Kinetics, highlighting the latter’s esteemed background in the investment management industry.
In response, Murray Stahl of Horizon Kinetics expressed gratitude for the ongoing partnership with Scott’s Liquid Gold. Stahl also emphasized that this transition to a publicly-traded company will benefit both owners and clients, enabling the firm to pursue strategic initiatives vital for future growth and success.
The merger is expected to be finalized in the second quarter of 2024, pending standard closing conditions. Both Horizon Kinetics and Scott’s Liquid Gold will seek approval from their respective members and shareholders. Scott’s Liquid Gold will specifically be seeking approval for its conversion from a Colorado to a Delaware corporation, an amendment to its charter to increase authorized shares, and a change in the company’s name.
A proxy statement, with complete details of the proposed transaction, will be filed with the Securities and Exchange Commission (SEC) and delivered to Scott’s Liquid Gold shareholders. It is important to note that this announcement should not be construed as an offer to sell securities, nor a solicitation to buy them, in any jurisdiction. Any such sale would require prior registration or qualification under applicable securities laws.
The news of this merger between Scott’s Liquid Gold, Inc. and Horizon Kinetics LLC is expected to have significant implications in the investment management sector. Investors and shareholders will be closely monitoring the developments as they unfold in the coming months.
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