The transaction, valued at approximately $10m, includes a combination of restricted stock and warrants issued to Thomas Klink, previously the sole stockholder of Jefferson, as well as extending the term of Jefferson’s existing credit facility.
As a result of the acquisition, Jefferson will operate as a wholly-owned subsidiary of Pioneer and Mr Klink will remain as Jefferson’s president. He will also join Pioneer’s board of directors, expanding the total number of directors to six.
Nathan Mazurek, chairman and CEO of Pioneer, said: “In terms of product portfolio, geographic presence and channels of distribution, the acquisition of Jefferson puts Pioneer in a very strong position as a balanced, high quality manufacturer and supplier in our industry.
“We anticipate this collaboration will have an immediate positive impact on both companies’ profitability and growth prospects.”
