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.

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

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