Delaware Chancellor Andre Bouchard has approved the sale of TransPerfect to co-founder Phil Shawe.
Late last year, Shawe appeared to prevail over a rival bid from a private equity firm that wanted to combine one of its holdings with TransPerfect, a New York-based translation and business services company.
Delaware Business Court Insider put the value of the deal at $780 million for the privately held company that according to many reports is growing and highly profitable.
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Earlier, a motion from a private equity firm was denied by TransPerfect.
Shawe issued the following statement:
“My mother and I are very pleased that the Court approved my purchase of the
remaining shares of TransPerfect, and thus ensured that our successful
business model will remain intact. This solution ensures to the best
interest of the Company, the global workforce, and the thousands of
customers who we are so privileged to serve. I look forward to putting the
uncertainty of litigation behind us, and to working with our existing
management team to continue the unparalleled track-record of growth and
profitability TransPerfect has enjoyed for over 25 years. TransPerfect owes
any and all of its success to the hard work of the industry’s most talented
and professional employees. I am confident that their contributions to the
next chapter of TransPerfect’s history will usher in a future of prosperity
that is even bigger and brighter than our illustrious past.”
Shawe’s mother Shirley had a one percent stake in the company, with Shawe owning 49 percent.
H.I.G. Middle Market, L.L.C. had objected to the sales agreement for TransPerfect. The apparent successful bidder was co-owner Philip Shawe. And his mother Shirley Shawe. Under the agreement, Shawe would acquire the 50 percent share owned by Elizabeth Elting.
The co-owners had deadlocked over management of the company, leading Delaware Chancery Court to appoint a custodian to conduct a sale. The custodian, despite tangling with Shawe, recommended Shawe buy the company.
Elting and Shawe, a former couple, founded the New York, NY company.
H.IG.’s portfolio of companies includes Lionbridge, a rival to TransPerfect in the translations industry.
Chancellor Andre Bouchard ruled at the time that H.I.G. had no standing in the sale and had previously entered into a contract that did not allow the company to object to the apparent successful bid for TransPerfect, even if the prices was not the highest offered.
Elting has also entered a motion in the case that is under seal. It would appear that Elting might not be happy with the price offered by Shawe.
Shawe had objected to the court-ordered sale process, with Elting appearing to support the sale.
H.I.G. is the former owner of the now-defunct steel mill in Claymont. After a public stock offering, the company was sold to a company controlled by a Russian oligarch for more than half a billion dollars.
Russian company, Evraz later closed and sold the 400-employee mill to a St. Louis real estate developer that leveled the mill. Plans call for a mixed-use commercial and industrial development.
The TransPerfect sales process has produced a flurry of litigation from Shawe, Elting and an employee group, Citizens for a Pro-Business Delaware.
Citizens for a Pro-Business Delaware wanted the Delaware General Assembly to require a two-year cooling off period for similar disputes involving profitable companies.
The group, which mounted a large public relations and marketing campaign, has gone quiet since the pending sale became public knowledge.
