Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Alexander Knaster’s Pamplona Capital Commits $594M to Mac Gray-CSC Fenway Merger

Pamplona Capital, Mac-Gray: Alexander Knaster’s Pamplona Capital Management just disclosed a 17.7% stake in Mac-Gray Corporation (NYSE:TUC), a laundry facilities company. Knaster and Pamplona are among the wealthiest hedge fund managers in the UK (No. 2, actually), and their position in Mac-Gray is activist in nature.

Mac-Gray

The move is in relation to CSC ServiceWorks’ recently announced acquisition of Mac-Gray, in which it plans on merging the smaller company with one of its subsidiaries, CSC Fenway. Mac-Gray is the controlling shareholder of CSC after it bought Coinmach Services and AIR-serv Group for $1.4 billion earlier this year.

In a separate letter attached to today’s filing, Pamplona says it “commits to purchase equity securities of or to make loans to Holdings for an aggregate purchase price of, but not exceeding in any event, $594 million,” $70 million more than CSC’s bid for Mac-Gray.

Much of the discount in Mac-Gray shares has already evaporated for merger arbitrage players, however; the stock is up almost 42% since October 15th.

Disclosure: none

Recommended Reading:

These 2 Hedge Funds Just Cut Cascade Microtech Significantly

Carl Icahn Tweets About Apple Letter, Unveils Plan to Launch New Website

ADW Capital Owns Over 5% of Hollywood Media Corporation

Loading...