Dixon

Background

Dixon Ticonderoga Company manufactures and markets writing instruments, art supplies and tools for self expression. Dixon was established in 1795 and is one of the oldest publicly traded companies in the United States.

The Situation

Dixon was approached by several parties over a period of time that were interested in acquiring all of the issued and outstanding shares of the company. As such, the Board of Directors of Dixon formed a Negotiating Committee to assist the Board of Directors in negotiating a transaction, as the management and their families held a majority position in the company.

The Solution

KPMG Corporate Finance was engaged by the Negotiating Committee to assist the Negotiating Committee and the Board of Directors in reviewing and evaluating offers and offer terms with prospective buyers, and to assist it in its analysis of a sale of Dixon. Additionally, KPMG's Corporate Finance provided negotiation assistance and advice to the Negotiating Committee. A successful transaction was negotiated with Fila-Fabbrica Lapis ed Affini S.p.A., an Italian maker of pens and design instruments, for $7 a share, which represented a a 75 percent premium to the stock price at the time of the initial offer from Fila. The acquisition will help Fila enter the US market with Dixon’s well-known art materials, and writing and office products that include brands such as Ticonderoga, Prang and Dixon.