IBJNews

Fortune Industries abandons sale to skilled-nursing operator

Back to TopCommentsE-mailPrintBookmark and Share

Indianapolis-based Fortune Industries Inc. plans to remain a professional employer organization after a proposed sale of the company fell through.

According to a Jan. 3 public filing, Fortune Industries terminated its purchase agreement with skilled-nursing operator Ide Management Group LLC of Greenfield.

Fortune Industries had planned to exit the PEO business in favor of becoming a skilled-nursing operator following the death of its founder, Carter Fortune, in late August.

Under the unusual proposal, Fortune Industries would have remained a public company and abandoned its previous plan to be taken private.

The restructuring hinged on shareholder approval of a merger agreement with Ide that would have given Ide Management CEO Mark Ide shares in Fortune Industries. Founded by Ide in 1997, IMG owns or manages 20 skilled-nursing facilities in Indiana, Illinois, Iowa and Wisconsin.

The filing didn’t provide a reason as to why negotiations broke down. Fortune Industries’ lawyer said an agreement simply couldn’t be reached.

Fortune Industries now plans to pursue a sale to CEP Inc., a holding company led by Fortune Industries CEO Tena Mayberry and Chief Financial Officer Randy Butler, which it had considered before the Ide proposal.

The planned management-led buyout, which would have resulted in the business going private, valued the company at $30.5 million. If the sale is completed, the company will follow the original plan and go private.

Mayberry and Butler plan to acquire company shares from Carter Fortune’s estate and use them to buy out Fortune Industries’ PEO subsidiaries, which would operate within CEP.

CEP would be privately held and based in Nashville, Tenn. Both Mayberry and Butler would no longer be a part of Fortune Industries.

Shares of the thinly traded company traded at 18 cents each Friday morning.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. I am so impressed that the smoking ban FAILED in Kokomo! I might just move to your Awesome city!

  2. way to much breweries being built in indianapolis. its going to be saturated market, if not already. when is enough, enough??

  3. This house is a reminder of Hamilton County history. Its position near the interstate is significant to remember what Hamilton County was before the SUPERBROKERs, Navients, commercial parks, sprawling vinyl villages, and acres of concrete retail showed up. What's truly Wasteful is not reusing a structure that could still be useful. History isn't confined to parks and books.

  4. To compare Connor Prairie or the Zoo to a random old house is a big ridiculous. If it were any where near the level of significance there wouldn't be a major funding gap. Put a big billboard on I-69 funded by the tourism board for people to come visit this old house, and I doubt there would be any takers, since other than age there is no significance whatsoever. Clearly the tax payers of Fishers don't have a significant interest in this project, so PLEASE DON'T USE OUR VALUABLE MONEY. Government money is finite and needs to be utilized for the most efficient and productive purposes. This is far from that.

  5. I only tried it 2x and didn't think much of it both times. With the new apts plus a couple other of new developments on Guilford, I am surprised it didn't get more business. Plus you have a couple of subdivisions across the street from it. I hope Upland can keep it going. Good beer and food plus a neat environment and outdoor seating.

ADVERTISEMENT