Standard Gets DOJ Approval for Central Merger
Standard Parking said today that it had received Department of Justice approval for its purchase of Central Parking. The new giant company will have to divest, sell, or allow to expire only about 100 lease/contract locations. Wow! I was expecting a lot more DOJ involvement.
The news release:
CHICAGO, Sept. 26, 2012 (GLOBE NEWSWIRE) — Standard Parking Corporation (Nasdaq:STAN), one of the nation’s leading providers of parking management, ground transportation and other ancillary services, today announced that it has reached agreement with the U.S. Department of Justice (DOJ) regarding Standard Parking’s merger with Central Parking Corporation. As part of the agreement, Standard Parking and Central Parking have entered into a Stipulation and a Proposed Final Judgment with DOJ that will permit the merger to proceed upon court approval. The parties expect to consummate the transaction promptly.
Under the terms of the Stipulation and the Proposed Final Judgment filed on September 26, 2012 in the United States District Court for the District of Columbia, Standard Parking and Central Parking will divest contracts and any related interests covering slightly more than 100 off street parking facilities. The contracts, which include both leases and management agreements, will be sold, terminated or permitted to expire without renewal. After the contracts and any related interests are divested, the combined entity will continue to manage the parking operations of more than 4,200 parking facilities located throughout the United States. The agreement with DOJ also will lead to the termination of the Waiting Period under the Hart-Scott-Rodino Act of 1976.
“We are pleased that DOJ has completed its antitrust review of the merger and that we’ve been able to reach an agreement that satisfies DOJ’s concerns,” said James A. Wilhelm, President and Chief Executive Officer of Standard Parking Corporation. “We look forward to closing the merger and moving forward with our integration plans so that we can realize the transaction’s anticipated benefits for our clients, customers and stockholders.”
Standard Parking intends to close the transaction in conjunction with the end of its 2012 third quarter. On October 1, the first business day on which Standard Parking and Central Parking will operate jointly, the management team will provide further information regarding the transaction’s closing.
Stay Tuned — more info to come next week