Elkridge, MD, US — GP Strategies Corporation (NYSE: GPX), a global provider of training, e-Learning solutions, management consulting, engineering and technical services through its principal operating subsidiary General Physics Corporation, today announced the completion of a private placement of 2,857,143 shares of common stock with Sagard Capital Partners, at a price of $7 per share, generating gross proceeds to GP Strategies of $20m. Sagard’s equity investment equates to an ownership interest of approximately 15.4% at this time.
"We are extremely pleased that an investor like Sagard Capital Partners shares our vision and we view their investment as a tangible sign of confidence in the direction GP Strategies is heading," commented Scott N Greenberg, chief executive officer of GP Strategies. "In expanding GP Strategies' platform as a leading customer training and performance improvement company, we will continue to look for opportunities to make strategic acquisitions and to fund internal growth, and this investment by Sagard strengthens our ability to do both."
"We are very excited to be associated with a quality company like GP Strategies. GP has become a leader in the technical training, consulting and services area by building extremely strong relationships with their clients," said Daniel Friedberg, managing partner of Sagard Capital Partners. "We look forward to supporting GP Strategies over the long term as they continue to expand their product offering and bring value to their clients."
In connection with the equity investment, Daniel Friedberg was elected to the board of directors of GP Strategies effective as of 30 December 2009.
The shares sold in the private placement have not been registered under the Securities Act of 1933, as amended, or state securities laws, and may not be offered or sold in the United States without being registered with the Securities and Exchange Commission (SEC) or through an applicable exemption from SEC registration requirements. The shares were offered and sold only to Sagard Capital Partners. GP Strategies has agreed to file a resale registration statement covering all the shares of the common stock issued to Sagard, up to the maximum number of shares permitted to be registered under the federal securities laws.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of any of the securities referred to in this news release in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state. Any offering of GP Strategies common stock under the resale registration statement referred to in this news release will be made only by means of a prospectus.
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