Moab Capital Partners Closes Stake in Mac-Gray Corporation (TUC) Following Merger

Moab Capital Partners, managed by  Michael M. Rothenberg and David Sackler, in a filing revealed that it no longer has a stake in Mac-Gray Corporation (NYSE:TUC). Earlier, the fund held 1.34 million shares of the company representing 9.1% stake in Mac-Gray Corporation (NYSE:TUC)’s common stock. The position was sold out following Mac-Gray's acquisition by Spin Holdco.

Mac-Gray

Post the January 9, 2014 completion of Mac-Gray Corporation (NYSE:TUC) merger with CSC Service Work, all shares of Mac-Gray Corporation (NYSE:TUC) which were beneficially owned by the Moab Capital ceases to exist. All shareholders, including Moab Capital supported the merger.

As per the October CSC Fenway, Inc. and Mac-Gray Corporation (NYSE:TUC), entered into a definitive merger agreement, under the terms of which the former has acquired all the outstanding common stock issued by Mac-Gray, paying $21.25 per share which represents a 42% appreciation on October 14, 2013 close price of Mac-Gray's stock. CSC Fenway, Inc. is a wholly-owned subsidiary of Spin Holdco, which is a subsidiary of CSC ServiceWorks, Inc.

CSC is a leading provider of multi-family housing and commercial laundry solutions. Mac-Gray, is a laundry facilities management services provider which is also into selling and service of commercial laundry equipment to retail customers. Mac-Gray Corporation (NYSE:TUC), has paid out dividend of $0.0875 per share at the beginning of January.

Mario Gabelli’s Gamco Investors upped its stake in Mac-Gray Corporation (NYSE:TUC) to 8.24% from 6.66% held earlier. Also, River Road Asset Management trimmed its holding in the stock to 335,678 shares from 1.3 million shares. Pamplona Capital Management, led by Alexander Knaster, disclosed in a filing that it holds a 17.7% stake in Mac-Gray Corporation (NYSE:TUC).

Moab Capital Partners, is an event-driven hedge fund. The second largest holding of the fund after  Mac-Gray Corporation (NYSE:TUC) is Macquarie Infrastructure Company LLC (NYSE:MIC), where the fund has invested 10.33% of its equity portfolio, which contains 25.0 million shares 324,788 shares. The fund also holds 1.96 million shares, of Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD). Another company where the fund has a long position is Susser Petroleum Partners LP (NYSE:SUSP), wherein it holds 310,562 shares with a reported value of $12.86 million.

Disclosure: none

Recommended Reading:

Bill & Melinda Gates Foundation Trust Discloses Selling Some Berkshire Hathaway Inc. (BRK.B); Plans To Sell 65 Mln More

SAC Capital Discloses New Stake in Textura Corp (TXTR)

Altimeter Capital Management Further Raises Stake in NQ Mobile Inc (NQ)

Sign Up

Get the InvestingChannel
Free e-Letter Today

Learn More

Independent market opinion, analysis and ideas - delivered every business day

Premium market opinions, analysis, and ideas - delivered every business day

Editor's Picks