FG Acquisition and Strong Global Entertainment announced the proposed acquisition of Strong/MDI Screen Systems. The deal, together with the launch of the SPAC’s new investment platform, will constitute a qualifying acquisition, the companies said.
The deal values MDI at a pre-money valuation of $30 million.
If approved, the combined company would be named Saltire Holdings, which would focus on growing a portfolio of profitable and cash-flow generating private equity investments that would not otherwise be available to public market investors.
The SPAC intends to pay cash in an amount equal to 25% of the net proceeds of a concurrent private placement, if any, plus the issuance to Strong Global of preferred shares with an initial redemption amount of $9 million, as well as the issuance of shares equal to the MDI equity value minus the cash consideration and the preferred shares, divided by $10.
MDI is a manufacturer and distributor of premium large format projection screens to the cinema industry in North America and around the globe. MDI has contractual relationships to supply screens to IMAX, AMC, Cinemark and many of the other major cinema operators worldwide. MDI also sells to non-cinema customers, such as theme parks, immersive attractions, and other entertainment venues as well as for use in training simulators. Read more.
