Presstek Sold to American Industrial Partners Affiliate

HUDSON, NH—Presstek Inc., a supplier of digital offset printing solutions to the printing and communications industries, has entered into a definitive merger agreement under which it will be acquired by MAI Holdings, an entity affiliated with American Industrial Partners (AIP) Capital Fund IV.

Under the terms of the agreement and plan of merger, which has been unanimously approved by the company’s board of directors, Presstek’s shareholders will receive $0.50 in cash for each share of common stock. This represents a premium of 16.3 percent over closing share price of the common stock on Aug. 22.

The agreement is subject to the approval of shareholders and other customary closing conditions and is expected to close during the fourth quarter of 2012. In connection with the transaction, AIP has obtained the agreement of Presstek’s largest shareholder, IAT Reinsurance, and its affiliates, which own 24.5 percent of the outstanding common stock, to vote in favor of the merger at the special shareholders meeting to be called for that purpose, subject to certain conditions.

“We are excited to combine the financial resources of AIP with the strong product portfolio of Presstek,” said Stanley Freimuth, Presstek’s chairman, president and CEO. “We believe that this combination will help to fuel the growth of the company, which has been challenging over the past few years as a result of the worldwide economic downturn.

“AIP is no stranger to our industry. One of its portfolio companies, Mark Andy, is the world’s leading designer of narrow- and mid-web flexographic equipment and aftermarket products serving the label, packaging and specialty printing markets. We look forward to working with Mark Andy in areas where it makes sense for both companies,” he added.

AIP is an operationally focused private equity investment firm that applies a collaborative approach with management in building and improving middle-market companies.

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