THERMADYNE HOLDINGS CORP /DE
SC 13E3/A, 1998-04-16
MACHINE TOOLS, METAL CUTTING TYPES
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<PAGE>

   

    AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON APRIL 16, 1998 
    

                      SECURITIES AND EXCHANGE COMMISSION 
                            WASHINGTON, D.C. 20549 

   
                               AMENDMENT NO. 2 
                                      TO 
                                SCHEDULE 13E-3 
                       RULE 13e-3 TRANSACTION STATEMENT 
      (Pursuant to Section 13(e) of the Securities Exchange Act of 1934) 
    

                       THERMADYNE HOLDINGS CORPORATION 
                               (Name of Issuer) 

   
                       THERMADYNE HOLDINGS CORPORATION 
                       MERCURY ACQUISITION CORPORATION 
                    DLJ MERCHANT BANKING PARTNERS II, L.P. 
                        DLJ OFFSHORE PARTNERS II, C.V. 
                        DLJ DIVERSIFIED PARTNERS, L.P. 
                            DLJMB FUNDING II, INC. 
                   DLJ MERCHANT BANKING PARTNERS II-A, L.P. 
                       DLJ DIVERSIFIED PARTNERS-A L.P. 
                            DLJ EAB PARTNERS, L.P. 
                        DLJ MILLENNIUM PARTNERS, L.P. 
                       DLJ MILLENNIUM PARTNERS-A, L.P. 
                       UK INVESTMENT PLAN 1997 PARTNERS 
                              DLJ FIRST ESC L.P. 
                               DLJ ESC II L.P. 
                              RANDALL E. CURRAN 
                                JAMES H. TATE 
                      (Name of Persons Filing Statement) 
                   COMMON STOCK, PAR VALUE $0.01 PER SHARE 
                        (Title of Class of Securities) 
                                   88345109 
                    (CUSIP Number of Class of Securities) 
    

                              RANDALL E. CURRAN 
               CHAIRMAN, PRESIDENT AND CHIEF EXECUTIVE OFFICER 
                       THERMADYNE HOLDINGS CORPORATION 
                       101 SOUTH HANLEY ROAD, SUITE 300 
                             ST. LOUIS, MISSOURI 
                                (314) 721-5573 
          (Name, Address and Telephone Number of Persons Authorized 
    to Receive Notices and Communications on Behalf of the Persons Filing 
                                  Statement) 

                            COPIES TO: 

        R. SCOTT COHEN, ESQ.          GEORGE R. BASON, JR., ESQ. 
     WEIL, GOTSHAL & MANGES LLP         DAVIS POLK & WARDWELL 
   100 CRESCENT COURT, SUITE 1300       450 LEXINGTON AVENUE 
         DALLAS, TEXAS 75201             NEW YORK, NY 10017 

                           APRIL , 1998 

  (Date Proxy Statement First Published, Sent or Given to Security Holders) 

This statement is filed in connection with (check the appropriate box): 
a. [X] The filing of solicitation materials or an information statement 
       subject to Regulation 14A, Regulation 14C or Rule 13e-3(c) under the 
       Securities Exchange Act of 1934. 
b. [X] The filing of a registration statement under the Securities Act of 
       1933. 
c. [ ] A tender offer. 
d. [ ] None of the above. 

Check the following box if the soliciting materials or information statement 
referred to in checking box (a) are preliminary copies:  [X] 
<PAGE>
   
   Thermadyne Holdings Corporation, a Delaware corporation (the "Company"), 
Mercury Acquisition Corporation, a Delaware corporation ("Mercury"), Randall 
E. Curran, James H. Tate and the following entities (collectively, the "DLJ 
Entities"): DLJ Merchant Banking Partners II, L.P. ("DLJMB"), a Delaware 
limited partnership, DLJ Offshore Partners II, C.V. ("Offshore"), a 
Netherlands Antilles limited partnership, DLJ Diversified Partners, L.P. 
("Diversified"), a Delaware limited partnership, DLJMB Funding II, Inc. 
("Funding"), a Delaware corporation, DLJ Merchant Banking Partners II-A, L.P. 
("DLJMB-A"), a Delaware limited partnership, DLJ Diversified Partners-A L.P. 
("Diversified-A"), a Delaware limited partnership, DLJ EAB Partners, L.P. 
("EAB"), a Delaware limited partnership, DLJ Millennium Partners, L.P. 
("Millennium"), a Delaware limited partnership, DLJ Millennium Partners-A, 
L.P. ("Millennium-A"), a Delaware limited partnership, UK Investment Plan 
1997 Partners ("UK Partners"), a Delaware partnership, DLJ First ESC L.P. 
("DLJ First"), a Delaware limited partnership, and DLJ ESC II, L.P. ("ESC 
II"), a Delaware limited partnership, hereby submit their Rule 13e-3 
Transaction Statement on Schedule 13E-3 (the "Statement"). The Statement 
relates to a proposed Agreement and Plan of Merger dated as of January 20, 
1998 (the "Merger Agreement") among the Company and Mercury Acquisition 
Corporation ("MergerSub"), a Delaware corporation, pursuant to which 
MergerSub will be merged with and into the Company (the "Merger"). Pursuant 
to the Merger, each share (a "Share") of common stock, par value $0.01 per 
share, of the Company issued and outstanding immediately prior to the 
effective time of the Merger (other than (i) Shares held by the Company as 
treasury stock or owned by MergerSub, which Shares shall be canceled, and 
(ii) Shares as to which appraisal rights have been validly perfected) will be 
converted at the election of the holder thereof, subject to the terms 
described in the proxy statement/prospectus of the Company (the "Proxy 
Statement/Prospectus"), into (a) the right to receive $34.50 in cash, or (b) 
the right to retain one fully paid and nonassessable share of common stock of 
the Company following the Merger. 
    

   This Statement is intended to satisfy the reporting requirements of 
Section 13(e) of the Securities Exchange Act of 1934, as amended (the 
"Exchange Act"). The Proxy Statement/Prospectus was filed by the Company with 
the Securities and Exchange Commission (the "Commission") immediately prior 
to the filing of this statement. Terms used but not defined herein shall have 
the meanings set forth in the Proxy Statement/Prospectus. 

   
   The cross reference sheet below is being supplied pursuant to General 
Instruction F to Schedule 13E-3 and shows the location in the Proxy 
Statement/Prospectus of the information required to be included in response 
to the items of this Statement. The information in the Proxy 
Statement/Prospectus, including all exhibits thereto, is hereby expressly 
incorporated herein by reference and the responses to each item in this 
Statement are qualified in their entirety by the information contained in the 
Proxy Statement/Prospectus. 
    


                                       1
<PAGE>
                            CROSS-REFERENCE SHEET 

   
<TABLE>
<CAPTION>
          ITEM IN 
      SCHEDULE 13E-3                         WHERE LOCATED IN THE PROXY STATEMENT/PROSPECTUS 
- -------------------------  ---------------------------------------------------------------------------------- 
<S>                       <C>
Item 1(a)                  Cover Page; SUMMARY AND SPECIAL FACTORS--The Company 
Item 1(b)                  SUMMARY AND SPECIAL FACTORS--The Special Meeting; THE SPECIAL MEETING--Record 
                           Date; Stock Entitled to Vote; Quorum; DESCRIPTION OF COMPANY CAPITAL 
                           STOCK--General 
Item 1(c)-(d)              SUMMARY AND SPECIAL FACTORS--Price of Company Common Stock; CONSOLIDATED FINANCIAL 
                           STATEMENTS OF THE COMPANY--Consolidated Statements of Shareholder's Equity; Notes 
                           to Consolidated Financial Statements: Note 8, Long-Term Obligations 
Item 1(e)                  ** 
Item 1(f)                  ** 
Item 2(a)-(g)              MERGERSUB AND DLJMB; MANAGEMENT FOLLOWING THE MERGER. This Schedule 13E-3 is being 
                           filed by the issuer, Mercury, the DLJ Entities and Messrs. Randall E. Curran and 
                           James H. Tate. Messrs. Curran and Tate have not in the last five years been 
                           convicted in a criminal proceeding (excluding traffic violations or similar 
                           misdemeanors), nor have Messrs. Curran and Tate in the last five years been a 
                           party to a civil proceeding of a judicial or administrative body resulting in a 
                           judgment, decree or order enjoining further violation of, or prohibiting 
                           activities, e.g., to, federal or state securities laws or finding any violation of 
                           such laws. 
Item 3(a)(1)-(2)           ** 
Item 3(b)                  THE MERGER--Background of the Merger;--Effect on Stock Options and Employee 
                           Benefit Matters;--Interests of Certain Persons in the Merger; DIRECTORS AND 
                           EXECUTIVE OFFICERS OF THE COMPANY; SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS 
                           AND MANAGEMENT; COMPENSATION OF EXECUTIVE OFFICERS AND DIRECTORS; CERTAIN 
                           PROVISIONS OF THE VOTING AGREEMENTS; MERGERSUB AND DLJMB 
Item 4(a)                  SUMMARY AND SPECIAL FACTORS--The Merger; THE MERGER; CERTAIN PROVISIONS OF THE 
                           MERGER AGREEMENT; CERTAIN PROVISIONS OF THE VOTING AGREEMENTS 
Item 4(b)                  THE MERGER--Effect on Stock Options and Employee Benefit Matters;--Interests of 
                           Certain Persons in the Merger; DIRECTORS AND EXECUTIVE OFFICERS OF THE COMPANY; 
                           SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT; COMPENSATION OF 
                           EXECUTIVE OFFICERS AND DIRECTORS; CERTAIN PROVISIONS OF THE VOTING AGREEMENTS 
Item 5(a)-(g)              SUMMARY AND SPECIAL FACTORS; RISK FACTORS; THE MERGER; DESCRIPTION OF COMPANY 
                           CAPITAL STOCK; CERTAIN PROVISIONS OF THE MERGER AGREEMENT; MANAGEMENT FOLLOWING 
                           THE MERGER; MERGERSUB AND DLJMB 
Item 6(a), (c)(1)-(2)      SUMMARY AND SPECIAL FACTORS--The Merger; THE MERGER --Merger 
                           Consideration;--Merger Financing; CERTAIN PROVISIONS OF THE MERGER 
                           AGREEMENT--Financing; MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION 
                           AND RESULTS OF OPERATIONS--Liquidity and Capital Resources; MERGERSUB AND DLJMB 


                                       2
<PAGE>
          ITEM IN 
      SCHEDULE 13E-3                         WHERE LOCATED IN THE PROXY STATEMENT/PROSPECTUS 
- -------------------------  ---------------------------------------------------------------------------------- 
Item 6(b)                  Cover Page; SUMMARY AND SPECIAL FACTORS--Certain Fees and Expenses; CERTAIN 
                           PROVISIONS OF THE MERGER AGREEMENT--Expenses; UNAUDITED CONDENSED CONSOLIDATED PRO 
                           FORMA FINANCIAL DATA; NOTES TO UNAUDITED CONDENSED CONSOLIDATED PRO FORMA 
                           STATEMENT OF OPERATIONS; MANAGEMENT'S DISCUSSION AND ANAYLSIS OF FINANCIAL 
                           CONDITION AND RESULTS OF OPERATIONS; CONSOLIDATED FINANCIAL STATEMENTS OF THE 
                           COMPANY--Notes to Consolidated Financial Statements: Note 2, Recent Events; 
                           MERGERSUB AND DLJMB 
Item 6(d)                  ** 
Item 7(a)-(c)              SUMMARY AND SPECIAL FACTORS--The Merger; THE MERGER --Background of the 
                           Merger;--Recommendation of the Board of Directors; Reasons for the Merger 
Item 7(d)                  SUMMARY AND SPECIAL FACTORS; RISK FACTORS; THE MERGER--Material United States 
                           Federal Income Tax Consequences;--Interests of Certain Persons in the Merger; 
                           CERTAIN PROVISIONS OF THE MERGER AGREEMENT; MANAGEMENT FOLLOWING THE MERGER 
Item 8(a)-(b)              SUMMARY AND SPECIAL FACTORS--The Merger; THE SPECIAL MEETING; THE 
                           MERGER--Background of the Merger;--Recommendation of the Board of Directors; 
                           Reasons for the Merger; --Opinion of Financial Advisor;--Certain Estimates of 
                           Future Operations and Other Information;--Merger Consideration; Annex D; SUMMARY 
                           AND SPECIAL FACTORS--Price of Company Common Stock; CONSOLIDATED FINANCIAL 
                           STATEMENTS OF THE COMPANY--Notes to Consolidated Financial Statements 
Item 8(c)                  THE SPECIAL MEETING--Required Votes 
Item 8(d)                  ** 
Item 8(e)                  SUMMARY AND SPECIAL FACTORS--The Special Meeting; THE SPECIAL MEETING; THE 
                           MERGER--Recommendation of the Board of Directors; Reasons for the Merger 
Item 8(f)                  ** 
Item 9(a)-(c)              SUMMARY AND SPECIAL FACTORS--The Merger; THE MERGER --Background of the 
                           Merger;--Opinion of Financial Advisor; Annex D 
Item 10(a)                 SUMMARY AND SPECIAL FACTORS--The Merger; THE MERGER --Interests of Certain Persons 
                           in the Merger; SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT; 
                           COMPENSATION OF EXECUTIVE OFFICERS AND DIRECTORS; MERGERSUB AND DLJMB 
Item 10(b)                 ** 
Item 11                    SUMMARY AND SPECIAL FACTORS--The Merger; THE MERGER; CERTAIN PROVISIONS OF THE 
                           MERGER AGREEMENT; Annex A; CERTAIN PROVISIONS OF THE VOTING AGREEMENTS; Annex B; 
                           Annex C; DESCRIPTION OF COMPANY CAPITAL STOCK; COMPENSATION OF EXECUTIVE OFFICERS 
                           AND DIRECTORS; MERGERSUB AND DLJMB 
Item 12(a)-(b)             SUMMARY AND SPECIAL FACTORS--The Special Meeting; THE SPECIAL MEETING--Matters to 
                           be Considered;--Required Votes; THE MERGER--Recommendation of the Board of 
                           Directors; Reasons for the Merger; CERTAIN PROVISIONS OF THE VOTING AGREEMENTS; 
                           Annex B; Annex C 


                                       3
<PAGE>
          ITEM IN 
      SCHEDULE 13E-3                         WHERE LOCATED IN THE PROXY STATEMENT/PROSPECTUS 
- -------------------------  ---------------------------------------------------------------------------------- 
Item 13(a)                 SUMMARY AND SPECIAL FACTORS--The Merger; THE SPECIAL MEETING--Appraisal Rights; 
                           DISSENTING STOCKHOLDERS' RIGHTS; Annex E 
Item 13(b)                 ** 
Item 13(c)                 ** 
Item 14(a)                 THE MERGER--Recommendation of the Board of Directors; Reasons for the Merger; 
                           SELECTED FINANCIAL DATA; CONSOLIDATED FINANCIAL STATEMENTS OF THE COMPANY 
Item 14(b)                 SUMMARY AND SPECIAL FACTORS--Summary Selected Historical and Unaudited Condensed 
                           Consolidated Pro Forma Financial Data; UNAUDITED CONDENSED CONSOLIDATED PRO FORMA 
                           FINANCIAL DATA; SELECTED FINANCIAL DATA; CONSOLIDATED FINANCIAL STATEMENTS OF THE 
                           COMPANY 
Item 15(a)-(b)             THE SPECIAL MEETING--Solicitation of Proxies 
Item 16                    ** 
Item 17(a)                 ** 
Item 17(b)                 Annex D 
Item 17(c)                 Annex A; Annex B; Annex C 
Item 17(d)                 ** 
Item 17(e)                 Annex E 
Item 17(f)                 ** 
</TABLE>
    

- ------------ 
**    The Item is inapplicable or the answer thereto is in the negative. 

ITEM 1. ISSUER AND CLASS OF SECURITIES SUBJECT TO THE TRANSACTION 

   (a) The information set forth on the cover page of, and under "SUMMARY AND 
SPECIAL FACTORS -- The Company" in, the Proxy Statement/Prospectus is 
incorporated herein by reference. 

   (b) The information set forth under "SUMMARY AND SPECIAL FACTORS -- The 
Special Meeting", "THE SPECIAL MEETING -- Record Date; Stock Entitled to 
Vote; Quorum" and "DESCRIPTION OF COMPANY CAPITAL STOCK -- General" in the 
Proxy Statement/Prospectus is incorporated herein by reference. 

   (c)-(d) The information set forth under "SUMMARY AND SPECIAL FACTORS -- 
Price of Company Common Stock", and "CONSOLIDATED FINANCIAL STATEMENTS OF THE 
COMPANY -- Consolidated Statements of Shareholder's Equity", "Notes to 
Consolidated Financial Statements: Note 8, Long-Term Obligations" in the 
Proxy Statement/Prospectus is incorporated herein by reference. 

   (e) Not applicable. 

   (f) Not applicable. 

ITEM 2. IDENTITY AND BACKGROUND 

   
   (a) The information set forth under "MERGERSUB AND DLJMB" in the Proxy 
Statement/ Prospectus is incorporated herein by reference. This Schedule 
13E-3 is being filed by the issuer, Mercury, the DLJ Entities and Messrs. 
Randall E. Curran and James H. Tate. 
    

   (b)-(g) Not applicable. 

ITEM 3. PAST CONTACTS, TRANSACTIONS OR NEGOTIATIONS 

   (a)(1)-(2) Not applicable. 


                                       4
<PAGE>
   (b) The information set forth under "THE MERGER -- Background of the 
Merger; -- Effect on Stock Options and Employee Benefit Matters; -- Interests 
of Certain Persons in the Merger", "DIRECTORS AND EXECUTIVE OFFICERS OF THE 
COMPANY", "SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT", 
"COMPENSATION OF EXECUTIVE OFFICERS AND DIRECTORS", "CERTAIN PROVISIONS OF 
THE VOTING AGREEMENTS" and "MERGERSUB AND DLJMB" in the Proxy 
Statement/Prospectus is incorporated herein by reference. 

ITEM 4. TERMS OF THE TRANSACTIONS 

   (a) The information set forth under "SUMMARY AND SPECIAL FACTORS -- The 
Merger", "THE MERGER", "CERTAIN PROVISIONS OF THE MERGER AGREEMENT" and 
"CERTAIN PROVISIONS OF THE VOTING AGREEMENTS" in the Proxy 
Statement/Prospectus is incorporated herein by reference. 

   (b) The information set forth under "THE MERGER -- Effect on Stock Options 
and Employee Benefit Matters; -- Interests of Certain Persons in the Merger" 
, "DIRECTORS AND EXECUTIVE OFFICERS OF THE COMPANY", "SECURITY OWNERSHIP OF 
CERTAIN BENEFICIAL OWNERS AND MANAGEMENT", "COMPENSATION OF EXECUTIVE 
OFFICERS AND DIRECTORS" and "CERTAIN PROVISIONS OF THE VOTING AGREEMENTS" in 
the Proxy Statement/ Prospectus is incorporated herein by reference. 

ITEM 5. PLANS OR PROPOSALS OF THE ISSUER OF AFFILIATE 

   (a)-(g) The information set forth under "SUMMARY AND SPECIAL FACTORS", 
"RISK FACTORS", "THE MERGER", "DESCRIPTION OF COMPANY CAPITAL STOCK", 
"CERTAIN PROVISIONS OF THE MERGER AGREEMENT", "MANAGEMENT FOLLOWING THE 
MERGER" and "MERGERSUB AND DLJMB" in the Proxy Statement/Prospectus is 
incorporated herein by reference. 

ITEM 6. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION 

   (a), (c)(1)-(2) The information set forth under "SUMMARY AND SPECIAL 
FACTORS -- The Merger", "THE MERGER -- Merger Consideration; -- Merger 
Financing", "CERTAIN PROVISIONS OF THE MERGER AGREEMENT -- Financing", 
"MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF 
OPERATIONS -- Liquidity and Capital Resources", and "MERGERSUB AND DLJMB" in 
the Proxy Statement/Prospectus is incorporated herein by reference. 

   (b) The information set forth on the cover page of, and under "CERTAIN 
PROVISIONS OF THE MERGER AGREEMENT -- Expenses", UNAUDITED CONDENSED 
CONSOLIDATED PRO FORMA FINANCIAL DATA; NOTES TO UNAUDITED CONDENSED 
CONSOLIDATED PRO FORMA STATEMENT OF OPERATIONS", "MANAGEMENT'S DISCUSSION AND 
ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS", "CONSOLIDATED 
FINANCIAL STATEMENTS OF THE COMPANY -- Notes to Consolidated Financial 
Statements: Note 2, Recent Events", and "MERGERSUB AND DLJMB" in the Proxy 
Statement/Prospectus is incorporated herein by reference. 

   (d) Not applicable. 

ITEM 7. PURPOSES, ALTERNATIVES, REASONS AND EFFECTS 

   (a)-(c) The information set forth under "SUMMARY AND SPECIAL FACTORS -- 
The Merger", and "THE MERGER -- Background of the Merger; -- Recommendation 
of the Board of Directors; Reasons for the Merger" in the Proxy 
Statement/Prospectus is incorporated herein by reference. 

   (d) The information set forth under "SUMMARY AND SPECIAL FACTORS", "RISK 
FACTORS", "THE MERGER -- Material United States Federal Income Tax 
Consequences; -- Interests of Certain Persons in the Merger", "CERTAIN 
PROVISIONS OF THE MERGER AGREEMENT", and "MANAGEMENT FOLLOWING THE MERGER" in 
the Proxy Statement/Prospectus is incorporated herein by reference. 


                                       5
<PAGE>
ITEM 8. FAIRNESS OF THE TRANSACTIONS 

   (a)-(b) The information set forth under "SUMMARY AND SPECIAL FACTORS -- 
The Merger", "THE SPECIAL MEETING", "THE MERGER -- Background of the Merger; 
- -- Recommendation of the Board of Directors; Reasons for the Merger; -- 
Opinion of Financial Advisor; -- Certain Estimates of Future Operations and 
Other Information; -- Merger Consideration", "Annex D", "SUMMARY AND SPECIAL 
FACTORS -- Price of Company Common Stock", and "CONSOLIDATED FINANCIAL 
STATEMENTS OF THE COMPANY -- Notes to Consolidated Financial Statements" in 
the Proxy Statement/Prospectus is incorporated herein by reference. 

   (c) The information set forth under "THE SPECIAL MEETING -- Required 
Votes" in the Proxy Statement/Prospectus is incorporated herein by reference. 

   (d) No representative was hired solely on behalf of unaffiliated security 
holders. 

   (e) The information set forth under "SUMMARY AND SPECIAL FACTORS -- The 
Special Meeting", "THE SPECIAL MEETING" and "THE MERGER -- Recommendation of 
the Board of Directors; Reasons for the Merger" in the Proxy 
Statement/Prospectus is incorporated herein by reference. 

   (f) Not applicable. 

ITEM 9. REPORTS, OPINIONS, APPRAISALS AND CERTAIN NEGOTIATIONS 

   (a)-(c) The information set forth under "SUMMARY AND SPECIAL FACTORS -- 
The Merger", "THE MERGER -- Background of the Merger; -- Opinion of Financial 
Advisor", and "Annex D" in the Proxy Statement/Prospectus is incorporated 
herein by reference. 

ITEM 10. INTEREST IN SECURITIES OF THE ISSUER 

   
   (a) The information set forth under "SUMMARY AND SPECIAL FACTORS -- The 
Merger", "THE MERGER -- Interests of Certain Persons in the Merger", 
"SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT", 
"COMPENSATION OF EXECUTIVE OFFICERS AND DIRECTORS", and "MERGERSUB AND DLJMB" 
in the Proxy Statement/ Prospectus is incorporated herein by reference. 
    

   (b) No transactions of the type required to be disclosed by Item 10(b) 
have been effected in the past 60 days. 

ITEM 11. CONTRACTS, ARRANGEMENTS OR UNDERSTANDINGS WITH RESPECT TO THE 
ISSUER'S SECURITIES 

   The information set forth under "SUMMARY AND SPECIAL FACTORS -- The 
Merger", "THE MERGER", "CERTAIN PROVISIONS OF THE MERGER AGREEMENT", "Annex 
A", "CERTAIN PROVISIONS OF THE VOTING AGREEMENTS", "Annex B", "Annex C", 
"DESCRIPTION OF COMPANY CAPITAL STOCK", "COMPENSATION OF EXECUTIVE OFFICERS 
AND DIRECTORS", and "MERGERSUB AND DLJMB" in the Proxy Statement/Prospectus 
is incorporated herein by reference. 

ITEM 12. PRESENT INTENTION AND RECOMMENDATION OF CERTAIN PERSONS WITH REGARD 
TO THE TRANSACTION 

   (a)-(b) The information set forth under "SUMMARY AND SPECIAL FACTORS -- 
The Special Meeting", "THE SPECIAL MEETING -- Matters to be Considered; -- 
Required Votes", "THE MERGER -- Recommendation of the Board of Directors; 
Reasons for the Merger", "CERTAIN PROVISIONS OF THE VOTING AGREEMENTS", 
"Annex B" and "Annex C" in the Proxy Statement/Prospectus is incorporated 
herein by reference. 

ITEM 13. OTHER PROVISIONS OF THE TRANSACTION 

   (a) The information set forth under "SUMMARY AND SPECIAL FACTORS -- The 
Merger", "THE SPECIAL MEETING -- Appraisal Rights", "DISSENTING STOCKHOLDERS' 
RIGHTS", and "Annex E" in the Proxy Statement/Prospectus is incorporated 
herein by reference. 


                                       6
<PAGE>
   (b) Not applicable. 

   (c) Not applicable. 

ITEM 14. FINANCIAL INFORMATION 

   (a) The information set forth under "THE MERGER -- Recommendation of the 
Board of Directors; Reasons for the Merger", "SELECTED FINANCIAL DATA" and 
"CONSOLIDATED FINANCIAL STATEMENTS OF THE COMPANY" in the Proxy 
Statement/Prospectus is incorporated herein by reference. 

   (b) The information set forth under "SUMMARY AND SPECIAL FACTORS -- 
Summary Selected Historical and Unaudited Condensed Consolidated Pro Forma 
Financial Data", "UNAUDITED CONDENSED CONSOLIDATED PRO FORMA FINANCIAL DATA", 
"SELECTED FINANCIAL DATA" and "CONSOLIDATED FINANCIAL STATEMENTS OF THE 
COMPANY" in the Proxy Statement/Prospectus is incorporated herein by 
reference. 

ITEM 15. PERSONS AND ASSETS EMPLOYED, RETAINED OR UTILIZED 

   (a)-(b) The information set forth under "THE SPECIAL MEETING -- 
Solicitation of Proxies" in the Proxy Statement/Prospectus is incorporated 
herein by reference. 

ITEM 16. ADDITIONAL INFORMATION 

   Reference is hereby made to the Proxy Statement/Prospectus and to each 
exhibit attached thereto, each of which is incorporated by reference herein. 

ITEM 17. MATERIAL TO BE FILED AS EXHIBITS 

   (a) Not applicable. 

   (b) Opinion of Gleacher NatWest Inc. (incorporated by reference to Annex D 
to the Proxy Statement/Prospectus). 

   
   (c)(1) Agreement and Plan of Merger dated as of January 20, 1998 between 
Thermadyne Holdings Corporation and Mercury Acquisition Corporation and Form 
of Amendment No. 1 thereto (incorporated by reference to Annex A to the Proxy 
Statement/Prospectus). 

   (c)(2) Voting Agreement dated as of January 20, 1998 (including Amendment 
No. 1 to the Voting Agreement dated as of February 20, 1998) among Thermadyne 
Holdings Corporation, Mercury Acquisition Corporation, Magten Asset 
Management Corp. and certain of its affiliates (incorporated by reference to 
Annex B to the Proxy Statement/Prospectus). 
    

   (c)(3) Voting Agreement dated as of January 20, 1998 among Thermadyne 
Holdings Corporation, Mercury Acquisition Corporation and Fidelity Capital & 
Income Fund (incorporated by reference to Annex C to the Proxy 
Statement/Prospectus). 

   (d) Proxy Statement/Prospectus and related Notice of Special Meeting and 
Proxy (incorporated by reference to the Proxy Statement/Prospectus and 
related material filed on Form S-4 by Thermadyne Holdings Corporation on the 
date hereof). 

   (e) Section 262 of the General Corporation Law of the State of Delaware 
(incorporated by reference to Annex E to the Proxy Statement/Prospectus). 

   (f) Not applicable. 


                                       7
<PAGE>
                                  SIGNATURE 

   After due inquiry and to the best of its knowledge and belief, the 
undersigned certifies that the information set forth in this statement is 
true, complete and correct. 

   
Dated: April 16, 1998 

                                        THERMADYNE HOLDINGS CORPORATION 

                                           By: /s/ JAMES H. TATE 
                                               ------------------------------ 
                                               Name: James H. Tate 
                                               Title: Senior Vice President 
                                                      and Chief 
                                                      Financial Officer 

                                        DLJ MERCHANT BANKING PARTNERS II, 
                                        L.P.,  a Delaware Limited Partnership 

                                           By DLJ Merchant Banking II, Inc., 
                                            as managing general partner 

                                           By: /s/ IVY DODES 
                                               ------------------------------ 
                                               Name: Ivy Dodes 
                                               Title: Vice President 

                                        DLJ MERCHANT BANKING PARTNERS II-A, 
                                        L.P., a Delaware Limited Partnership 

                                           By DLJ Merchant Banking II, Inc., 
                                            as managing general partner 

                                           By: /s/ IVY DODES 
                                               ------------------------------ 
                                               Name: Ivy Dodes 
                                               Title: Vice President 

                                        DLJ OFFSHORE PARTNERS II, C.V., 
                                         a Netherlands Antilles Limited 
                                        Partnership 

                                           By DLJ Merchant Banking II, Inc., 
                                            as advisory general partner 

                                           By: /s/ IVY DODES 
                                               ------------------------------ 
                                               Name: Ivy Dodes 
                                               Title: Vice President 
    


                                       8
<PAGE>
                                        DLJ DIVERSIFIED PARTNERS, L.P., 
                                         a Delaware Limited Partnership 

                                           By DLJ Diversified Partners II 
                                           Inc., as managing general partner 

                                           By: /s/ IVY DODES 
                                               ------------------------------ 
                                               Name: Ivy Dodes 
                                               Title: Vice President 

                                        DLJ DIVERSIFIED PARTNERS-A, L.P., 
                                         a Delaware Limited Partnership 

                                           By DLJ Diversified Partners II, 
                                           Inc., as managing general partner 

                                           By: /s/ IVY DODES 
                                               ------------------------------ 
                                               Name: Ivy Dodes 
                                               Title: Vice President 

                                        DLJ EAB PARTNERS, L.P., 
                                         a Delaware Limited Partnership 

                                           By DLJ LBO Plans Management 
                                           Corporation as manager 

                                           By: /s/ IVY DODES 
                                               ------------------------------ 
                                               Name: Ivy Dodes 
                                               Title: Vice President 

                                        DLJ MILLENNIUM PARTNERS, L.P., 
                                         a Delaware Limited Partnership 
                                           By DLJ Merchant Banking Partners 
                                           II, Inc., as managing general partner

                                           By: /s/ IVY DODES 
                                               ------------------------------ 
                                               Name: Ivy Dodes 
                                               Title: Vice President 

                                        UK INVESTMENT PLAN 1997 PARTNERS 

                                           By Donaldson Lufkin & Jenrette, 
                                           Inc., as general partner 

                                           By: /s/ MARJORIE WHITE 
                                               ------------------------------ 
                                               Name: Marjorie White 
                                               Title: Vice President 

                                       9
<PAGE>
                                        DLJ MILLENNIUM PARTNERS-A, L.P., 
                                         a Delaware Limited Partnership 

                                           By DLJ Merchant Banking Partners 
                                           II, Inc., as managing general partner

                                           By: /s/ IVY DODES 
                                               ------------------------------ 
                                               Name: Ivy Dodes 
                                               Title: Vice President 

                                        DLJMB FUNDING II, INC., 
                                         a Delaware Corporation 

                                           By: /s/ IVY DODES 
                                               ------------------------------ 
                                               Name: Ivy Dodes 
                                               Title: Vice President 

                                        DLJ FIRST ESC, L.P. 

                                           By DLJ LBO Plans Management 
                                           Corporation, as general partner 

                                           By: /s/ IVY DODES 
                                               ------------------------------ 
                                               Name: Ivy Dodes 
                                               Title: Vice President 

                                        DLJ ESC II, L.P. 

                                           By DLJ LBO Plans Management 
                                           Corporation, as general partner 

                                           By: /s/ IVY DODES 
                                               ------------------------------ 
                                               Name: Ivy Dodes 
                                               Title: Vice President 

                                        UK INVESTMENT PLAN 1997 PARTNERS 

                                           By Donaldson, Lufkin & Jenrette, 
                                           Inc., as general partner 

                                           By: /s/ MARJORIE WHITE 
                                               ------------------------------ 
                                               Name: Marjorie White 
                                               Title: Vice President 

                               10           
<PAGE>
                                        MERCURY ACQUISITION CORPORATION 

                                           By: /s/ WILLIAM F. DAWSON, JR. 
                                                   -------------------------- 
                                                   Name: William F. Dawson, 
                                                   Jr. Title: Vice President 

                                        RANDALL E. CURRAN 
                                           /s/ RANDALL E. CURRAN 
                                               ------------------------------ 
                                               Randall E. Curran 

                                        JAMES H. TATE 
                                           /s/ JAMES H. TATE 
                                               ------------------------------ 
                                               James H. Tate 




































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