Adesa will have a new CEO if the company goes private later this year, as proposed.
The would-be owners of North America's largest used-vehicle auction network have announced plans to place Brian Clingen at the helm of the Carmel, Ind.-based company. If shareholders approve the sale of Adesa during a special meeting, Clingen will become the company's chairman and chief executive officer.
Those titles currently belong to David Gartzke, former chairman, president and CEO of Duluth-based Allete Inc.
Adesa was a subsidiary of Allete until 2004, when it was spun off into an independent, publicly traded company. Today, Allete operates Minnesota Power and also owns and manages a Florida real estate portfolio.
It remains unclear whether there will be a continued role for Gartzke, 63, at Adesa after the sale. Gartzke declined comment and calls to Clingen on Thursday afternoon were not returned.
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A news release regarding pending changes in Adesa's management included a statement from Gartzke, saying: "We are totally committed to a smooth and successful transition at the close of the transaction and to the continued success of the Adesa companies in the interim. Our current senior management team is ready and willing to continue to work with the new members of the team to ensure a strong organization full of opportunity for our employees going forward."
Investors controlling a majority of Adesa's shares must vote in support of taking the company private before a sale can occur. A special shareholder meeting to collect and count votes on the matter is planned for March. If shareholders approve the sale, the deal could close by late April or early May.
The sale would involve a group of investment firms, including Kelso & Co.; ValueAct Capital; Parthenon Capital and GS Capital Partners, an affiliate of Goldman Sachs. Together, they have offered to buy Adesa for about $3.7 billion, including the assumption of about $700 million in debt. If accepted, the offer would result in investors receiving a payment of $27.85 per share.
Adesa's board of directors has recommended shareholders support the sale.
Adesa operates 54 used-vehicle auction facilities, 42 salvage auction operations and 85 loan offices for dealers.
