UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
VALLEY NATIONAL GASES INCORPORATED
(Exact name of registrant as specified in its charter)
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Pennsylvania
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000-29226
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23-2888240 |
(State or other jurisdiction
or incorporation)
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(Commission
File Number)
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(IRS Employer
Identification No.) |
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200 West Beau Street, Suite 200
Washington, Pennsylvania
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15301 |
(Address of principal executive offices)
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(Zip code) |
Registrant’s telephone number, including area code: (
724) 228-3000
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing
obligation of
the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
x Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01. Entry Into A Material Definitive Agreement
Valley National Gases Incorporated (the
“Company”) has entered into an Agreement and
Plan of Merger, dated as of
November 13, 2006 (the
“Merger Agreement”), with VNG Acquisition LLC, a Delaware limited liability company (the
“Buyer”), and VNG Acquisition Inc., a Pennsylvania corporation and wholly owned subsidiary of the Buyer (the
“Transitory Subsidiary”), pursuant to which the Transitory Subsidiary will be merged with and into
the Company,
with
the Company continuing after the merger as the surviving corporation and a wholly owned subsidiary of the
Buyer (the
“Merger”). The Buyer and the Transitory Subsidiary are entities affiliated with Caxton-Iseman
Capital, Inc., a New York-based private investment firm.
Pursuant to the Merger Agreement, at the effective time of the Merger, (i) each issued and outstanding share of
common stock, par value $0.001 per share, of
the Company, other than shares owned by the Buyer or any subsidiary
of
the Company or the Buyer, shares owned by any shareholders who are entitled to and who properly exercise
appraisal rights under Pennsylvania law, and shares owned by Gary E. West and certain shareholders controlled by
Mr. West (the
“West Shareholders”) shall be cancelled and shall be converted automatically into the right to
receive $27.00 in cash, without interest, and (ii) each issued and outstanding share of common stock, par value
$0.001 per share, of
the Company owned by the West Shareholders shall be cancelled and shall be converted
automatically into the right to receive $24.52 in cash, without interest.
The Company has made customary representations and warranties and covenants in the Merger Agreement.
The Merger Agreement has been approved by
the Company’s board of directors. The Merger is conditioned on, among
other things, the approval and adoption of the Merger Agreement by
the Company’s shareholders, the termination or
expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, the
execution and delivery of an escrow agreement among Gary West, the Buyer and a mutually agreeable escrow agent,
and the closing of debt financing arrangements set forth in a commitment letter obtained by the Buyer for the
transactions contemplated by the Merger Agreement, which are subject to customary conditions.
The Company has
recommended that its shareholders approve and adopt the Merger Agreement. Gary West, who beneficially owns
approximately 72% of
the Company’s outstanding shares, has agreed to vote his shares in favor of the approval and
adoption of the Merger Agreement and the Merger. The Merger Agreement contains certain termination rights and
provides that, upon the termination of the Merger Agreement under certain circumstances,
the Company would be
required to pay the Buyer a termination fee of $9 million.
Other than the Merger Agreement, there is no material relationship between
the Company and either of the Buyer or
the Transitory Subsidiary.
Important Additional Information Will be Filed with the SEC
The Company plans to file with the SEC and mail to its shareholders a Proxy Statement in connection with the
Merger. The Proxy Statement will contain important information about
the Company, the Merger and related
matters. Investors and security holders are urged to read the Proxy Statement carefully when it is available.
Investors and security holders will be able to obtain free copies of the Proxy Statement and other documents
filed with the SEC by
the Company through the
web site maintained by the SEC at
www.sec.gov.
In addition, investors and security holders will be able to obtain free copies of the Proxy Statement from the
Company by contacting
James P. Hart, President and Chief Financial Officer, Valley National Gases Incorporated,
200 West Beau Street, Suite 200,
Washington,
Pennsylvania 15301, telephone: (724)
228-3000.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Statements in this document regarding the proposed merger transaction, the expected effects, timing and
completion of the proposed transaction and any other statements about Valley National Gases’ future expectations,
beliefs, goals, plans or prospects constitute forward looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including
statements containing the words “believes,” “plans,” “anticipates,” “expects,” “estimates” and similar
expressions) should also be considered to be forward looking statements. There are a number of important factors
that could cause actual results or events to differ materially from those indicated by such forward-looking
statements, including: the failure of the Buyer to consummate the necessary debt financing arrangements set forth
in a commitment letter received by the Buyer or the failure to satisfy other conditions to the closing of the
proposed transaction, and the ability to recognize the benefits of the transaction. Other important factors
known to Valley National that could cause such material differences are identified and discussed from time to
time in Valley National’s filings with the Securities and Exchange Commission, including Valley National’s
ability to evaluate, negotiate, complete and integrate acquisitions, finance and manage future growth, maintain
supply and customer relationships, retain key employees and comply with financial covenants in its credit
facility; the prices and markets for gases, including propane; economic factors such as the level of economic
activity nationally and in the regions Valley National serves and political and economic conditions generally;
the continued execution of operating improvements; competition; and the outcome of litigation relating to product
liability, employment law and other claims. In addition, any forward-looking statements represent Valley
National’s estimates only as of today and should not be relied upon as representing Valley National’s estimates as
of any subsequent date. Valley National disclaims any intention or obligation to update any forward-looking
statements as a result of developments occurring after the date of this Current Report on Form 8-K.
Item 8.01. Other Events
Item 9.01. Financial Statements and Exhibits
(d) Exhibits