Thermadyne Agrees to $422-Million Buyout

Private equity group to acquire for metal cutting and welding products manufacturer

Thermadyne Holdings Corp. has agreed to be taken over by a private-equity group in a proposed, $422-million transaction that Thermadyne executives characterize as “value creation.” Directors of the metal cutting and welding products group have approved the transaction and recommend shareholders to adopt the proposed agreement with Irving Place Capital.

Subject to shareholders’ approval, the transaction would close in December.

The purchase agreement allows Thermadyne’s shareholders to receive $15.00 per share in cash for each share of Thermadyne’s common stock, an 18% premium on the average closing share price ($12.71) during the 30 trading days preceding October 4, and a 25% premium over Thermadyne’s average closing share price ($12.05) during the 90 trading days preceding October 4, 2010.

It’s not known what changes the new owners may institute in the company, but Irving Place Capital senior managing director Douglas Korn stated the equity group is “excited to invest behind this talented management team in pursuit of Thermadyne’s vision for continued product and service innovations in key global markets.”

Thermadyne chairman Paul Melnuk stated: “I am very pleased with the accomplishments that our leadership team and employees around the world have made over the last seven years in restoring and revitalizing Thermadyne’s leadership position in the marketplace. This transaction allows all of our shareholders to realize the value created.”

St. Louis-based Thermadyne manufactures metal cutting and welding products and accessories. Its various product lines include Victor®, Tweco®, Arcair®, Thermal Dynamics®, Thermal Arc®, Stoody®, TurboTorch®, Firepower® and Cigweld®.

Martin Quinn, Thermadyne’s president stated: “Our team has created a strong market presence with leading brands and unwavering customer commitment. Irving Place Capital’s ability to bring value-added resources will help continue Thermadyne’s growth momentum.”

Irving Place Capital is a private investment group that focuses on buyouts, recapitalizations and growth capital opportunities. Its holdings include a variety of financial, industrial, and retail companies, including Alpha Packaging Holdings, Alter Moneta, CamelBak, Caribbean Financial Group, Cavalry Investments, CH4 Energy, Chesapeake Corp., Doral Financial, Ironshore Inc., MC Energy Logistics Ltd., Mold-Rite Plastics Inc., New York & Company, Pet Supplies “Plus”, Transamerican Auto Parts Company LLC, Vitamin Shoppe, and several others.

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