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Previous: G T GLOBAL DEVELOPING MARKETS FUND INC, DEF 14A, 1996-06-04 |
Next: NEW WORLD COMMUNICATIONS GROUP INC, 8-K, 1996-06-04 |
<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported):
May 21, 1996
------------
ARCH COMMUNICATIONS GROUP, INC.
- - --------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in its Charter)
Delaware
- - --------------------------------------------------------------------------------
(State or Other Jurisdiction of Incorporation)
0-23232 31-1358569
- - ------------------------------------ -----------------------------------------
(Commission File Number) (IRS Employer Identification No.)
1800 West Park Drive, Suite 250, Westborough, MA 01581
- - --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(508) 870-6700
- - --------------------------------------------------------------------------------
Registrant's Telephone Number, Including Area Code
Not Applicable
- - --------------------------------------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)
<PAGE> 2
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
On May 21, 1996, Arch Communications Enterprises, Inc.
("Enterprises"), a wholly-owned subsidiary of Arch Communications
Group, Inc. ("Arch"), acquired all of the issued and outstanding
capital stock and other equity interests (the "Acquisition") of
Westlink Holdings, Inc. ("Westlink") pursuant to a Stock Purchase
Agreement dated as of December 17, 1995 and amended as of March 18,
1996 and May 20, 1996 (the "Stock Purchase Agreement"). Immediately
after the Acquisition, Westlink was merged with and into Enterprises,
as a result of which Westlink's operating subsidiaries became direct or
indirect subsidiaries of Enterprises.
Prior to the Acquisition, Westlink offered paging services in
Arizona, California, Colorado, Idaho, Iowa, Minnesota, Nebraska,
Nevada, New Mexico, North Dakota, Oregon, South Dakota, Utah,
Washington, Wisconsin and Wyoming and had approximately 475,000 pagers
in service upon completion of the Acquisition. Arch currently intends
to continue Westlink's business in substantially the same manner as
conducted by Westlink prior to the Acquisition.
The completion of the Acquisition expands Arch's operations to a
total of 38 states and 90 of the largest 100 markets in the United
States. Arch is now the third largest paging company in the United
States with more than 2.7 million pagers in service.
The purchase price for the Acquisition was approximately $318
million in cash. Such amount included the repayment of Westlink's bank
indebtedness as well as certain adjustments for capital expenditures
made by Westlink prior to the closing.
Arch financed the Acquisition with borrowings under a credit
facility with The Bank of New York and cash proceeds from a senior
discount note offering completed on March 12, 1996.
The Stock Purchase Agreement and the Acquisition were approved by
the Boards of Directors of Arch and Enterprises. Each holder of shares
of, or options or warrants to acquire, capital stock of Westlink signed
the Stock Purchase Agreement and agreed to the Acquisition.
Arch intends to account for the Acquisition as a "purchase" for
accounting and reporting purposes.
The terms of the Stock Purchase Agreement and Acquisition were
determined on the basis of arms'-length negotiations. Prior to the
execution of the Stock Purchase Agreement, neither Arch nor any of its
affiliates had any material relationship with Westlink or its
stockholders.
<PAGE> 3
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial statements of businesses acquired:
-------------------------------------------
The financial statements of Westlink and US West Paging, Inc.
contained on pages F-47 through F-71 of Arch's Registration Statement
on Form S-3 (File No. 333-542) are hereby incorporated by reference.
It is impracticable to provide the remainder of the required
financial statements at the time of the filing of this Form 8-K. The
remainder of the required financial statements will be filed on Form
8-K/A as soon as practicable after the date hereof, but not later than
August 5, 1996.
(b) Pro forma financial information:
-------------------------------
The pro forma financial statements of Arch contained on pages 18
through 21 of Arch's Registration Statement on Form S-3 (File No.
333-542) are hereby incorporated by reference.
It is impracticable to provide the remainder of the required pro
forma financial information at the time of the filing of this Form 8-K.
The remainder of the required pro forma financial information will be
filed on Form 8-K/A as soon as practicable after the date hereof, but
not later than August 5, 1996.
(c) Exhibits:
--------
See Exhibit Index attached hereto.
<PAGE> 4
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
Date: June 3, 1996 ARCH COMMUNICATIONS GROUP, INC.
By: /s/ William A. Wilson
-----------------------------
William A. Wilson
Vice President/Finance and
Chief Financial Officer
<PAGE> 5
EXHIBIT INDEX
-------------
Exhibit
Number Description
------ -----------
2.1 Stock Purchase Agreement dated as of
December 17, 1995*
2.2 Amendment No. 1 to Stock Purchase
Agreement dated as of March 18, 1996**
2.3 Amendment No. 2 to Stock Purchase
Agreement dated as of May 20, 1996**
99.1 Press Release issued May 21, 1996**
--------------------
* Incorporated by reference from Amendment No. 2 to the
Registration Statement on Form S-3 (Registration Statement
No. 333-542) of Arch filed March 6, 1996.
** Filed herewith.
<PAGE> 1
AMENDMENT NO. 1 TO STOCK PURCHASE AGREEMENT
THIS AMENDMENT NO. 1 (this "AMENDMENT"), dated as of March 18, 1996 to the
Stock Purchase Agreement (the "Agreement"), dated as of December 17, 1995, by
and among Westlink Holdings, Inc., a Delaware corporation (the "Company");
Merrill Lynch Capital Appreciation Partnership No. B-XXIV, L.P.; ML IBK
Positions, Inc.; MLCP Associates L.P. No. III; Merrill Lynch KECALP L.P. 1991;
Merrill Lynch KECALP L.P. 1994 (collectively, the "DOMESTIC ML INVESTORS"); ML
Offshore LBO Partnership No. B-XXIV (the "OFFSHORE FUND" and, together with the
Domestic ML Investors, the "ML INVESTORS"); Robert P. Meinzer, Jr. ("MEINZER");
Bruce Knooihuizen; John A. Lund; Patricia A. Shaheen; Dennis R. Snyder and the
other individuals named on the signature pages hereto (together with Meinzer,
the "MANAGEMENT INVESTORS" and, together with Meinzer and the Domestic ML
Investors, the "COMMON STOCK SELLERS"); and Chemical Equity Associates, a
California Limited Partnership ("CEA" and, together with the ML Investors and
the Management Investors, the "SELLERS"); and Arch Communications Group, Inc., a
Delaware corporation ("BUYER").
WHEREAS, Sellers and Buyer have previously executed the Agreement;
WHEREAS, Sellers and Buyer desire to amend the Agreement as set forth
herein;
NOW, THEREFORE, the parties hereto agree as follows:
1. DEFINITIONS. Capitalized terms used in this Amendment and not otherwise
defined herein shall have the respective meanings ascribed to such terms in the
Agreement, as amended by this Amendment.
2. DESIGNATION OF PURCHASER. Pursuant to Section 2.1 of the Agreement,
Buyer hereby designates Arch Communications Enterprises, Inc., a Delaware
corporation and wholly-owned subsidiary of Buyer ("ACE"), as the entity that
shall purchase all of the Securities, and all references to the Buyer as the
entity purchasing the Securities in the Agreement shall be deemed to refer to
ACE (provided that nothing in this Amendment shall relieve Buyer from any of its
obligations under the Agreement).
3. DEFINITION OF BANK INDEBTEDNESS AMOUNT. The definition of "Bank
Indebtedness Amount" set forth in Section 1.1 of the Agreement is hereby amended
by deleting the period at the end thereof and replacing it with the following:
", and under that certain Demand Promissory Note, dated as of March 18, 1996,
<PAGE> 2
executed by The Westlink Company, a Delaware corporation, in favor of Bankers
Trust Company (the "Supplemental Note")."
4. BUYER OPTION TO DIRECTLY REPAY BANK INDEBTEDNESS. Notwithstanding the
provisions of Sections 2.1 and 6.9 of the Agreement, Buyer (and ACE, pursuant to
the foregoing designation) may elect, upon notice delivered to the Company no
less than three business days prior to the day that is expected to be the
Closing Date, to pay directly at the Closing all of the Bank Indebtedness Amount
to the agents and/or lenders party to the Credit Agreement and the Supplemental
Note, according to the provisions thereof, in lieu of making a capital
contribution equal to the Net Debt Amount; provided that nothing herein (i)
shall relieve ACE and/or Buyer from their obligations to make a capital
contribution to the Company in the amount of the Accelerated Special Bonus and
the Preferred Stock Redemption Price or the Company and Meinzer from their
obligations to apply such amounts as set forth in the Agreement, or (ii) shall
relieve ACE and/or Buyer from their obligations to pay the exercise price of the
Options on behalf of the holders thereof or such holders from their obligations
to repay such amounts to ACE and/or Buyer, all as provided in the Agreement;
provided, further that, if Buyer and/or ACE elect to pay directly all of the
Bank Indebtedness Amount, the Company shall retain the Option Proceeds and the
Note Proceeds and such amounts shall not be available to the Sellers; and
provided further that nothing in this Paragraph 4 shall be deemed to modify in
any manner the definition of Purchase Price set forth in the Agreement or the
amounts, or manner of calculation thereof, set forth in Schedule 2.1 to the
Agreement.
5. GOVERNING LAW. This Amendment shall be governed by and construed in
accordance with the laws of the State of Delaware without reference to the
choice of law principles thereof.
6. COUNTERPARTS. This Amendment may be executed in any number of
counterparts and each of such counterparts shall for all purposes be deemed an
original and all such counterparts shall together constitute but one and the
same instrument.
7. AGREEMENT CONFIRMED. Except as amended hereby, the Agreement is ratified
and confirmed in all respects.
IN WITNESS WHEREOF, this Amendment has been signed by or on behalf of each
of the parties as of the day first above written.
WESTLINK HOLDINGS, INC.
By: /s/ Robert P. Meinzer, Jr.
--------------------------------
Name:
Title:
-2-
<PAGE> 3
ARCH COMMUNICATIONS GROUP, INC.
By: /s/ C.E. Baker, Jr.
--------------------------------
Name: C.E. Baker, Jr.
Title: CEO
ARCH COMMUNICATIONS ENTERPRISES, INC.
By: /s/ C.E. Baker, Jr.
--------------------------------
Name: C.E. Baker, Jr.
Title: CEO
MERRILL LYNCH CAPITAL APPRECIATION
PARTNERSHIP NO. B-XXIV, L.P.
By: Merrill Lynch LBO Partners No.
B-VI, L.P., its general partner
By: Merrill Lynch Capital Partners,
Inc., its general partner
By: /s/ James V. Caruso
----------------------------
Name: James V. Caruso
Title: Vice President
ML IBK POSITIONS, INC.
By: /s/ James V. Caruso
--------------------------------
Name: James V. Caruso
Title: Vice President
[Amendment No. 1]
<PAGE> 4
MLCP ASSOCIATES L.P. NO. III
By: Merrill Lynch Capital Partners,
Inc., its general partner
By: /s/ James V. Caruso
----------------------------
Name: James V. Caruso
Title: Vice President
MERRILL LYNCH KECALP L.P. 1991
By: KECALP, Inc., its general partner
By: /s/ James V. Caruso
----------------------------
Name: James V. Caruso
Title: Vice President
MERRILL LYNCH KECALP L.P. 1994
By: KECALP Inc., its general partner
By: /s/ James V. Caruso
------------------------------
Name: James V. Caruso
Title: Vice President
[Amendment No. 1]
<PAGE> 5
ML OFFSHORE LBO PARTNERSHIP
NO. B-XXIV
By: Merrill Lynch LBO Partners
No. B-VI, L.P., its
investment general partner
By: Merrill Lynch Capital Partners,
Inc., its general partner
By: /s/ James V. Caruso
----------------------------
Name: James V. Caruso
Title: Vice President
ROBERT P. MEINZER, JR.
------------------------------------
BRUCE R. KNOOIHUIZEN
------------------------------------
JOHN A. LUND
------------------------------------
PATRICIA A. SHAHEEN
------------------------------------
[Amendment No. 1]
<PAGE> 6
ML OFFSHORE LBO PARTNERSHIP
NO. B-XXIV
By: Merrill Lynch LBO Partners
No. B-VI, L.P., its
investment general partner
By: Merrill Lynch Capital Partners,
Inc., its general partner
By:
----------------------------
Name:
Title:
ROBERT P. MEINZER, JR.
/s/ Robert P. Meinzer, Jr.
------------------------------------
BRUCE R. KNOOIHUIZEN
------------------------------------
JOHN A. LUND
------------------------------------
PATRICIA A. SHAHEEN
------------------------------------
<PAGE> 7
ML OFFSHORE LBO PARTNERSHIP
NO. B-XXIV
By: Merrill Lynch LBO Partners
No. B-VI, L.P., its
investment general partner
By: Merrill Lynch Capital Partners,
Inc., its general partner
By:
----------------------------
Name:
Title:
ROBERT P. MEINZER, JR.
------------------------------------
BRUCE R. KNOOIHUIZEN
/s/ Bruce R. Knooihuizen
------------------------------------
JOHN A. LUND
------------------------------------
PATRICIA A. SHAHEEN
------------------------------------
<PAGE> 8
ML OFFSHORE LBO PARTNERSHIP
NO. B-XXIV
By: Merrill Lynch LBO Partners
No. B-VI, L.P., its
investment general partner
By: Merrill Lynch Capital Partners,
Inc., its general partner
By:
----------------------------
Name:
Title:
ROBERT P. MEINZER, JR.
------------------------------------
BRUCE R. KNOOIHUIZEN
------------------------------------
JOHN A. LUND
/s/ John A. Lund
------------------------------------
PATRICIA A. SHAHEEN
------------------------------------
<PAGE> 9
ML OFFSHORE LBO PARTNERSHIP
NO. B-XXIV
By: Merrill Lynch LBO Partners
No. B-VI, L.P., its
investment general partner
By: Merrill Lynch Capital Partners,
Inc., its general partner
By:
----------------------------
Name:
Title:
ROBERT P. MEINZER, JR.
------------------------------------
BRUCE R. KNOOIHUIZEN
------------------------------------
JOHN A. LUND
------------------------------------
PATRICIA A. SHAHEEN
/s/ Patricia A. Shaheen
------------------------------------
<PAGE> 10
DENNIS R. SNYDER
/s/ Dennis R. Snyder
------------------------------------
CHEMICAL EQUITY ASSOCIATES
By:
----------------------------------,
its general partner
By:
------------------------------
Name:
Title:
SCOTT R. HOYT
------------------------------------
RICHARD A. PIERCE
------------------------------------
JULIA M. PIZZI
------------------------------------
ROBERT J. CLARK
------------------------------------
<PAGE> 11
DENNIS R. SNYDER
------------------------------------
CHEMICAL EQUITY ASSOCIATES
By: CHEMICAL VENTURE PARTNERS
its general partner
By: /s/ Donald Hofmann
------------------------------
Name:
Title:
SCOTT R. HOYT
------------------------------------
RICHARD A. PIERCE
------------------------------------
JULIA M. PIZZI
------------------------------------
ROBERT J. CLARK
------------------------------------
<PAGE> 12
DENNIS R. SNYDER
------------------------------------
CHEMICAL EQUITY ASSOCIATES
By: CHEMICAL EQUITY ASSOCIATES
its general partner
By:
------------------------------
Name:
Title:
SCOTT R. HOYT
/s/ Scott R. Hoyt
------------------------------------
RICHARD A. PIERCE
------------------------------------
JULIA M. PIZZI
------------------------------------
ROBERT J. CLARK
------------------------------------
<PAGE> 13
DENNIS R. SNYDER
------------------------------------
CHEMICAL EQUITY ASSOCIATES
By:
-----------------------------------,
its general partner
By:
------------------------------
Name:
Title:
SCOTT R. HOYT
------------------------------------
RICHARD A. PIERCE
/s/ Richard A. Pierce
------------------------------------
JULIA M. PIZZI
------------------------------------
ROBERT J. CLARK
------------------------------------
<PAGE> 14
DENNIS R. SNYDER
------------------------------------
CHEMICAL EQUITY ASSOCIATES
By:
-----------------------------------,
its general partner
By:
------------------------------
Name:
Title:
SCOTT R. HOYT
------------------------------------
RICHARD A. PIERCE
------------------------------------
JULIA M. PIZZI
/s/ Julia M. Pizzi
------------------------------------
ROBERT J. CLARK
------------------------------------
<PAGE> 15
DENNIS R. SNYDER
------------------------------------
CHEMICAL EQUITY ASSOCIATES
By:
-----------------------------------,
its general partner
By:
------------------------------
Name:
Title:
SCOTT R. HOYT
------------------------------------
RICHARD A. PIERCE
------------------------------------
JULIA M. PIZZI
------------------------------------
ROBERT J. CLARK
/s/ Robert J. Clark
------------------------------------
<PAGE> 16
EUGENE A. COLAIANNI
/s/ Eugene A. Colaianni
------------------------------------
PAMELA A. JAVAZON
------------------------------------
ROBERT P. LUND
------------------------------------
MARK R. MADISON
------------------------------------
MARIANNE F. MCCLAUGHLIN
------------------------------------
EUGENE A. NAES, JR.
------------------------------------
GREGORY A. NICKUM
------------------------------------
<PAGE> 17
EUGENE A. COLAIANNI
------------------------------------
PAMELA A. JAVAZON
/s/ Pamela A. Javazon
------------------------------------
ROBERT P. LUND
------------------------------------
MARK R. MADISON
------------------------------------
MARIANNE F. MCCLAUGHLIN
------------------------------------
EUGENE A. NAES, JR.
------------------------------------
GREGORY A. NICKUM
------------------------------------
<PAGE> 18
EUGENE A. COLAIANNI
------------------------------------
PAMELA A. JAVAZON
------------------------------------
ROBERT P. LUND
/s/ Robert P. Lund
------------------------------------
MARK R. MADISON
------------------------------------
MARIANNE F. MCCLAUGHLIN
------------------------------------
EUGENE A. NAES, JR.
------------------------------------
GREGORY A. NICKUM
------------------------------------
<PAGE> 19
EUGENE A. COLAIANNI
------------------------------------
PAMELA A. JAVAZON
------------------------------------
ROBERT P. LUND
------------------------------------
MARK R. MADISON
/s/ Mark R. Madison
------------------------------------
MARIANNE F. MCCLAUGHLIN
------------------------------------
EUGENE A. NAES, JR.
------------------------------------
GREGORY A. NICKUM
------------------------------------
<PAGE> 20
EUGENE A. COLAIANNI
------------------------------------
PAMELA A. JAVAZON
------------------------------------
ROBERT P. LUND
------------------------------------
MARK R. MADISON
------------------------------------
MARIANNE F. MCCLAUGHLIN
/s/ Marianne F. MccLaughlin
------------------------------------
EUGENE A. NAES, JR.
------------------------------------
GREGORY A. NICKUM
------------------------------------
<PAGE> 21
EUGENE A. COLAIANNI
------------------------------------
PAMELA A. JAVAZON
------------------------------------
ROBERT P. LUND
------------------------------------
MARK R. MADISON
------------------------------------
MARIANNE F. MCCLAUGHLIN
------------------------------------
EUGENE A. NAES, JR.
/s/ Eugene A. Naes, Jr.
------------------------------------
GREGORY A. NICKUM
------------------------------------
<PAGE> 22
EUGENE A. COLAIANNI
------------------------------------
PAMELA A. JAVAZON
------------------------------------
ROBERT P. LUND
------------------------------------
MARK R. MADISON
------------------------------------
MARIANNE F. MCCLAUGHLIN
------------------------------------
EUGENE A. NAES, JR.
------------------------------------
GREGORY A. NICKUM
/s/ Gregory A. Nickum
------------------------------------
<PAGE> 23
LORI A. SECHRIST
/s/ Lori A. Sechrist
------------------------------------
RICHARD D. YARBOUGH
------------------------------------
NELSON R. STANSBURY
------------------------------------
JOHN R. BRIDENSTINE
------------------------------------
TONY D. KNITTLE
------------------------------------
SHERYL A. KELSH
------------------------------------
MELNE A. SHEPARD
------------------------------------
<PAGE> 24
LORI A. SECHRIST
------------------------------------
RICHARD D. YARBOUGH
/s/ Richard D. Yarbough
------------------------------------
NELSON R. STANSBURY
------------------------------------
JOHN R. BRIDENSTINE
------------------------------------
TONY D. KNITTLE
------------------------------------
SHERYL A. KELSH
------------------------------------
MELNE A. SHEPARD
------------------------------------
<PAGE> 25
LORI A. SECHRIST
------------------------------------
RICHARD D. YARBOUGH
------------------------------------
NELSON R. STANSBURY
/s/ Nelson R. Stansbury
------------------------------------
JOHN R. BRIDENSTINE
------------------------------------
TONY D. KNITTLE
------------------------------------
SHERYL A. KELSH
------------------------------------
MELNE A. SHEPARD
------------------------------------
<PAGE> 26
LORI A. SECHRIST
------------------------------------
RICHARD D. YARBOUGH
------------------------------------
NELSON R. STANSBURY
------------------------------------
JOHN W. BRIDENSTINE
/s/ John W. Bridenstine
------------------------------------
TONY D. KNITTLE
------------------------------------
SHERYL A. KELSH
------------------------------------
MELNE A. SHEPARD
------------------------------------
<PAGE> 27
LORI A. SECHRIST
------------------------------------
RICHARD D. YARBOUGH
------------------------------------
NELSON R. STANSBURY
------------------------------------
JOHN R. BRIDENSTINE
------------------------------------
TONY D. KNITTLE
/s/ Tony D. Knittle
------------------------------------
SHERYL A. KELSH
------------------------------------
MELNE A. SHEPARD
------------------------------------
<PAGE> 28
LORI A. SECHRIST
------------------------------------
RICHARD D. YARBOUGH
------------------------------------
NELSON R. STANSBURY
------------------------------------
JOHN R. BRIDENSTINE
------------------------------------
TONY D. KNITTLE
------------------------------------
SHERYL A. KELSH
/s/ Sheryl A. Kelsh
------------------------------------
MELNE A. SHEPARD
------------------------------------
<PAGE> 29
LORI A. SECHRIST
------------------------------------
RICHARD D. YARBOUGH
------------------------------------
NELSON R. STANSBURY
------------------------------------
JOHN R. BRIDENSTINE
------------------------------------
TONY D. KNITTLE
------------------------------------
SHERYL A. KELSH
------------------------------------
MELNE A. SHEPARD
/s/ Melne A. Shepard
------------------------------------
<PAGE> 30
LARRY GLOVER
/s/ Larry Glover
------------------------------------
SUSAN SHAKESPEARE
------------------------------------
<PAGE> 31
LARRY GLOVER
------------------------------------
SUSAN SHAKESPEARE
/s/ Susan Shakespeare
------------------------------------
<PAGE> 1
AMENDMENT NO. 2 TO STOCK PURCHASE AGREEMENT
THIS AMENDMENT NO. 2 (this "AMENDMENT"), dated as of May 20, 1996 to the
Stock Purchase Agreement (the "Agreement"), dated as of December 17, 1995, as
amended as of March 18, 1996, by and among Westlink Holdings, Inc., a Delaware
corporation (the "COMPANY"); Merrill Lynch Capital Appreciation Partnership No.
B-XXIV, L.P.; ML IBK Positions, Inc.; MLCP Associates L.P. No. III; Merrill
Lynch KECALP L.P. 1991; Merrill Lynch KECALP L.P. 1994 (collectively, the
"DOMESTIC ML INVESTORS"); ML Offshore LBO Partnership No. B-XXIV (the "OFFSHORE
FUND" and, together with the Domestic ML Investors, the "ML Investors"); Robert
P. Meinzer, Jr. ("MEINZER"); Bruce R. Knooihuizen; John A. Lund; Patricia A.
Shaheen; Dennis R. Snyder and the other individuals named on the signature pages
hereto (together with Meinzer, the "MANAGEMENT INVESTORS" and, together with
Meinzer and the Domestic ML Investors, the "COMMON STOCK SELLERS"); and Chemical
Equity Associates, a California Limited Partnership ("CEA" and, together with
the ML Investors and the Management Investors, the "SELLERS"); Arch
Communications Group, Inc., a Delaware corporation ("BUYER"); and Arch
Communications Enterprises, Inc, a Delaware Corporation ("ENTERPRISES").
WHEREAS, the Company, Sellers and Buyer have previously executed the
Agreement;
WHEREAS, the Company, Sellers, Buyer and Enterprises have previously
executed Amendment No. 1 to Stock Purchase Agreement, dated as of March 18, 1996
("Amendment No. 1");
WHEREAS, the Company, Sellers, Buyer and Enterprises desire to amend the
Agreement as set forth herein;
NOW, THEREFORE, the parties hereto agree as follows:
1. DEFINITION OF PURCHASE PRICE. The definition of "Purchase Price" set
forth in Section 1.1 of the Agreement is deleted in its entirety and the
following is inserted in its place:
"PURCHASE PRICE" shall mean (A) three hundred ten million dollars
(U.S. $310,000,000), minus (B) the Bank Indebtedness Amount, minus (C) the
Preferred Stock Redemption Price, minus (D) the Excess Transaction
Expenses, as increased by (E) Total Capital Expenditures, pursuant to
Section 6.13 hereof.
2. GENERAL RELEASE. (a) The parties hereto agree that, effective as of the
consummation of the transactions contemplated by the Agreement, any and all
claims, rights, causes
<PAGE> 2
of action, suits, matters and issues, known or unknown, liquidated or
non-liquidated, contingent or absolute, state or federal, that have been, could
have been, or in the future could be asserted, either directly, individually,
representatively or in any other capacity, by Buyer or any of Buyer's present or
former directors, officers, trustees, parents, affiliates, subsidiaries, general
or limited partners, shareholders, heirs, executors, administrators, successors
or assigns, against any Seller, or present or former directors, officers,
agents, employees, attorneys, accountants, representatives, advisers, investment
bankers, commercial bankers, trustees, parents, affiliates, subsidiaries,
general or limited partners, shareholders, heirs, executors, administrators,
successors or assigns of any Seller, or anyone else (the "RELEASED SELLER
PARTIES"), or against any of the present or former directors, officers, agents,
employees, attorneys, representatives, advisers, investment bankers, commercial
bankers, trustees, parents, affiliates, subsidiaries, general or limited
partners, shareholders, heirs, executors, administrators, successors or assigns
of the Released Seller Parties, in connection with, or that arise out of or
relate to (1) the Agreement; (2) Amendment No. 1; (3) this Amendment; (4) the
Stock Purchase; and (5) each of the transactions, events or occurrences that
relate directly or indirectly to the Agreement or the Stock Purchase or the
negotiation, consideration and approval thereof, except purported claims, if
any, to enforce the terms or conditions of this Section 2, shall be compromised,
settled, released, and discharged; PROVIDED, HOWEVER, that nothing herein shall
modify or limit Buyer's rights pursuant to Section 10.1 of the Agreement.
(b) The parties hereto agree that, effective as of the consummation of the
transactions contemplated by the Agreement, any and all claims, rights, causes
of action, suits, matters and issues, known or unknown, liquidated or
non-liquidated, contingent or absolute, state or federal, that have been, could
have been, or in the future could be asserted, either directly, individually,
representatively or in any other capacity, by any of the Sellers or any of their
present or former directors, officers, trustees, parents, affiliates,
subsidiaries, general or limited partners, shareholders, heirs, executors,
administrators, successors or assigns, against Buyer, or any of Buyer's present
or former directors, officers, agents, employees, attorneys, accountants,
representatives, advisers, investment bankers, commercial bankers, trustees,
parents, affiliates, subsidiaries, general or limited partners, shareholders,
heirs, executors, administrators, successors or assigns, or anyone else (the
"RELEASED BUYER PARTIES"), or against any of the present or former directors,
officers, agents, employees, attorneys, representatives, advisers, investment
bankers, commercial bankers, trustees, parents, affiliates, subsidiaries,
general or limited partners, shareholders, heirs, executors, administrators,
successors or assigns of the Released Buyer Parties, in connection with, or that
arise out of or relate to (1) the Agreement; (2) Amendment No. 1, (3)
-2-
<PAGE> 3
this Amendment; (4) the Stock Purchase; and (5) each of the transactions, events
or occurrences that relate directly or indirectly to the Agreement or the Stock
Purchase or the negotiation, consideration and approval thereof, except
purported claims, if any, to enforce the terms or conditions of this Section 2,
shall be compromised, settled, released and discharged; PROVIDED, HOWEVER, that
nothing herein shall modify or limit any Seller's rights pursuant to Section
10.1 of the Agreement.
3. PUBLIC DISCLOSURE. Buyer's press release announcing the Closing shall be
as set forth on Exhibit A hereto.
4. DEFINITIONS. Capitalized terms used in this Amendment and not otherwise
defined herein shall have the respective meaning ascribed to such terms in the
Agreement, as amended by this Amendment.
5. COUNTERPARTS. This Amendment may be executed in any number of
counterparts and each of such counterparts shall for all purposes be deemed an
original and all such counterparts shall together constitute but one and the
same instrument.
-3-
<PAGE> 4
IN WITNESS WHEREOF, this Amendment has been signed by or on behalf of each
of the parties as of the day first above written.
WESTLINK HOLDINGS, INC.
By: /s/ Robert P. Meinzer, Jr.
---------------------------------
Robert P. Meinzer, Jr.
President, Chairman and Chief
Executive Officer
MERRILL LYNCH CAPITAL
APPRECIATION PARTNERSHIP
NO. B-XXIV, L.P.
By: Merrill Lynch LBO Partners
No. B-VI, L.P., its general
partner
By: Merrill Lynch Capital Partners,
Inc., its general partner
By: /s/ James V. Caruso
---------------------------
Name: James V. Caruso
Title: VP
ML IBK POSITIONS, INC.
By: /s/ James V. Caruso
--------------------------------
Name: James V. Caruso
Title: VP
[Amendment No. 2 to Stock Purchase Agreement]
<PAGE> 5
IN WITNESS WHEREOF, this Amendment has been signed by or on behalf of each
of the parties as of the day first above written.
WESTLINK HOLDINGS, INC.
By: /s/ Robert P. Meinzer, Jr.
---------------------------------
Robert P. Meinzer, Jr.
President, Chairman and Chief
Executive Officer
MERRILL LYNCH CAPITAL
APPRECIATION PARTNERSHIP
NO. B-XXIV, L.P.
By: Merrill Lynch LBO Partners
No. B-VI, L.P., its general
partner
By: Merrill Lynch Capital Partners,
Inc., its general partner
By:
---------------------------
Name: James V. Caruso
Title: VP
ML IBK POSITIONS, INC.
By:
--------------------------------
Name: James V. Caruso
Title: VP
[Amendment No. 2 to Stock Purchase Agreement]
<PAGE> 6
MLCP ASSOCIATES L.P. NO. III
By: Merrill Lynch Capital Partners,
Inc., its general partner
By: /s/ James V. Caruso
---------------------------
Name: James V. Caruso
Title: VP
MERRILL LYNCH KECALP L.P. 1991
By: KECALP Inc.,
its general partner
By: /s/ James V. Caruso
---------------------------
Name: James V. Caruso
Title: VP
MERRILL LYNCH KECALP L.P. 1994
By: KECALP Inc.,
its general partner
By: /s/ James V. Caruso
---------------------------
Name: James V. Caruso
Title: VP
[Amendment No. 2 to Stock Purchase Agreement]
<PAGE> 7
ML OFFSHORE LBO PARTNERSHIP
NO. B-XXIV
By: Merrill Lynch LBO Partners
No. B-VI, L.P., its
investment general partner
By: Merrill Lynch Capital Partners,
Inc., its general partner
By: /s/ James V. Caruso
----------------------------
Name: James V. Caruso
Title: VP
ROBERT P. MEINZER, JR.
------------------------------------
BRUCE R. KNOOIHUIZEN
------------------------------------
JOHN A. LUND
------------------------------------
PATRICIA A. SHAHEEN
------------------------------------
[Amendment No. 2 to Stock Purchase Agreement]
<PAGE> 8
ML OFFSHORE LBO PARTNERSHIP
NO. B-XXIV
By: Merrill Lynch LBO Partners
No. B-VI, L.P., its
investment general partner
By: Merrill Lynch Capital Partners,
Inc., its general partner
By:
----------------------------
Name:
Title:
ROBERT P. MEINZER, JR.
/s/ Robert P. Meinzer, Jr.
------------------------------------
BRUCE R. KNOOIHUIZEN
/s/ Bruce R. Knooihuizen
------------------------------------
JOHN A. LUND
*
------------------------------------
PATRICIA A. SHAHEEN
*
------------------------------------
[Amendment No. 2 to Stock Purchase Agreement]
<PAGE> 9
DENNIS R. SNYDER
*
------------------------------------
CHEMICAL EQUITY ASSOCIATES
By: CHEMICAL VENTURE PARTNERS,
its general partner
By: /s Donald Hofmann
--------------------------------
Name: Donald Hofmann
Title:
ARCH COMMUNICATIONS GROUP, INC.
By:
--------------------------------
Name:
Title:
ARCH COMMUNICATIONS ENTERPRISES,
INC.
By:
--------------------------------
Name:
Title:
SCOTT R. HOYT
*
------------------------------------
[Amendment No. 2 to Stock Purchase Agreement]
<PAGE> 10
DENNIS R. SNYDER
*
------------------------------------
CHEMICAL EQUITY ASSOCIATES
By: CHEMICAL VENTURE PARTNERS,
its general partner
By:
--------------------------------
Name:
Title:
ARCH COMMUNICATIONS GROUP, INC.
By: /s/ C.E. BAKER, JR.
--------------------------------
Name: C.E. BAKER, JR.
Title: CEO
ARCH COMMUNICATIONS ENTERPRISES,
INC.
By: /s/ C.E. BAKER, JR.
--------------------------------
Name: C.E. BAKER, JR.
Title: CEO
SCOTT R. HOYT
*
------------------------------------
[Amendment No. 2 to Stock Purchase Agreement]
<PAGE> 11
RICHARD A. PIERCE
*
------------------------------------
JULIA M. PIZZI
*
------------------------------------
ROBERT J. CLARK
*
------------------------------------
EUGENE A. COLAIANNI
*
------------------------------------
PAMELA A. JAVAZON
*
------------------------------------
ROBERT P. LUND
*
------------------------------------
MARK R. MADISON
*
------------------------------------
[Amendment No. 2 to Stock Purchase Agreement]
<PAGE> 12
MARIANNE F. MCCLAUGHLIN
*
------------------------------------
EUGENE A. NAES, JR.
*
------------------------------------
GREGORY A. NICKUM
*
------------------------------------
LORI A. SECHRIST
*
------------------------------------
RICHARD D. YARBOUGH
*
------------------------------------
NELSON R. STANSBURY
*
------------------------------------
JOHN W. BRIDENSTINE
*
------------------------------------
[Amendment No. 2 to Stock Purchase Agreement]
<PAGE> 13
TONY D. KNITTLE
*
------------------------------------
SHERYL A. KELSH
*
------------------------------------
MELNE A. SHEPARD
*
------------------------------------
LARRY GLOVER
*
------------------------------------
SUSAN SHAKESPEARE
*
------------------------------------
*By: Robert P. Meinzer, Jr.
-------------------------------
Attorney-in-fact
[Amendment No. 2 to Stock Purchase Agreement]
<PAGE> 1
EXHIBIT 99.1
NEWS RELEASE
--------------------------------------------------
---------------------------------------------
----------------------------------------
FOR IMMEDIATE RELEASE Contact: William A. Wilson,
- - --------------------- VP/Finance and CFO
Tuesday, May 21, 1996 (508) 870-6700
ARCH COMMUNICATIONS GROUP, INC. COMPLETES
ACQUISITION OF WESTLINK HOLDINGS, INC.
Westborough, Massachusetts - (Tuesday, May 21, 1996) - Arch Communications
Group, Inc. (NASDAQ:APGR) announced today that it has completed its acquisition
of Westlink Holdings, Inc. The completion of the Westlink acquisition expands
Arch's operations to a total of 38 states and 90 of the largest 100 markets in
the United States. Westlink has approximately 475,000 subscriber units in
service. Arch is now the third largest paging company in the United States, with
more than 2.7 million pagers in service.
The cash purchase price paid at closing was approximately $318 million,
reflecting the repayment of Westlink's debt and certain purchase price
adjustments under the stock purchase agreement as agreed to prior to closing.
Arch funded the acquisition with bank financing and cash proceeds from a senior
discount note offering completed on March 12, 1996.
C.E. Baker, Jr., Chairman, President and Chief Executive Officer of Arch said,
"This is an outstanding acquisition for Arch. With this transaction, we
accomplish two important strategic objectives. First, with Westlink and our own
ongoing expansion program, we have effectively completed the geographic
footprint that makes us a top-tier, national player. Second, Westlink brings
strategically important narrowband spectrum. We now hold a 49.9% interest in
Benbow PCS Ventures, Inc., a winner of regional narrowband PCS licenses. We also
acquire an extensive 900 MHz, 14 state regional license. These licenses promise
to be the platform for new and exciting services."
The financial advisor to Arch was Prudential Securities Incorporated. Westlink's
financial advisor was Merrill Lynch & Co.
Arch is a leading provider of narrowband wireless messaging services,
principally paging, to over 2.7 million subscribers in 38 states.
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