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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13E-3
RULE 13E-3 TRANSACTION STATEMENT
(PURSUANT TO SECTION 13(e) OF THE SECURITIES EXCHANGE ACT OF 1934)
ERGO SCIENCE CORPORATION
(Name of Issuer)
ERGO
SCIENCE CORPORATION
WILLIAM T. COMFORT III
(Name of Person(s) Filing Statement)
COMMON
STOCK, $0.01 PAR VALUE
(Title of Class of Securities)
29481Q-10-9
(CUSIP Number of Class of Securities)
Charles
E. Finelli
Chief Executive Officer
790 Turnpike Street
North Andover, Massachusetts 01845
(978) 688-8833
(Name, Address and Telephone Number of Person Authorized to Receive
Notices and Communications on Behalf of Person(s) Filing Statement)
COPIES
TO:
Michael D. Wortley
Vinson & Elkins LLP
2001 Ross Avenue, Suite 3700
Dallas, Texas 75201
(214) 220-7700
THIS
TRANSACTION HAS NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE FAIRNESS OR MERITS OF SUCH TRANSACTION NOR UPON THE ACCURACY OR
ADEQUACY OF THE INFORMATION CONTAINED IN THIS DOCUMENT. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.
This
statement is filed in connection with (check the appropriate box):
ý a. |
|
The filing of solicitation materials or an information statement subject to Regulation 14A, Regulation 14(C) or Rule 13e-3(c) under the Securities Exchange Act of 1934. |
o b. |
|
The filing of a registration statement under the Securities Act of 1933. |
o c. |
|
A tender offer. |
o 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 ý.
Check the following box if the filing is a final amendment reporting the results of the transaction: o.
CALCULATION OF FILING FEE
Transaction Valuation* |
|
Amount of Filing Fee |
$16,800 |
|
$3.36 |
The
filing fee was determined based on the product of: (a) the estimated 8,000 shares of common stock proposed to be acquired from stockholders in the transaction to which this Schedule 13E-3 relates;
and (b) the consideration of $2.10 per share of common stock (the "aggregate value"). The amount required to be paid with the filing of this Schedule 13E-3 equals one-fiftieth of one percent times the
aggregate value.
o |
|
Check the box if any part of the fee is offset as provided by Rule 0-11(a)(2) and identify the filing with which the offsetting fee was previously paid. Identify the previous filing by registration statement number,
or the Form or Schedule and the date of its filing. |
Amount
Previously Paid:
Form
or Registration No.:
Filing
Party:
Date
Filed:
INTRODUCTION
This Rule 13e-3 Transaction Statement on Schedule 13E-3 ("Schedule 13E-3") is being filed by Ergo Science
Corporation, a Delaware corporation (the "Company"), and William T. Comfort III pursuant to Section 13(e) of the Securities Exchange Act of 1934, as amended ("Exchange Act"), and
Rule 13e-3 promulgated thereunder, concurrently with the filing of a preliminary proxy statement pursuant to Regulation 14A under the Exchange Act, which is referred to
herein as the Proxy Statement. The information contained in the Proxy Statement, including all annexes thereto, is hereby expressly incorporated herein by reference. As of the date of this
Schedule 13E-3, the Proxy Statement is in preliminary form and is subject to completion or amendment.
Item 1. Summary Term Sheet.
The information set forth in the Proxy Statement under "Summary Term Sheet" is incorporated herein by reference.
Item 2. Subject Company Information.
- (a)
- Name and Address. The name of the subject company is Ergo Science Corporation. The address of the principal executive offices of the
Company is 790 Turnpike Street, North Andover, Massachusetts 01845. The telephone number of the Company is 978-688-8833.
- (b)
- Securities. The information set forth in the Proxy Statement under "Market for Common Stock and Related Stockholder Matters" is
incorporated herein by reference.
- (c)
- Trading, Market and Prices. The information set forth in the Proxy Statement under "Market for Common Stock and Related Stockholder
Matters" is incorporated herein by reference.
- (d)
- Dividends. The information set forth in the Proxy Statement under "Market for Common Stock and Related Stockholder Matters" is
incorporated herein by reference.
- (e)
- Prior Public Offerings. The Company has not made an underwritten public offering of the Common Stock for cash during the three years
preceding the date of the filing of this Schedule 13E-3.
- (f)
- Prior Stock Purchases. The Company has not purchased any Common Stock during the two years preceding the date of the filing of this
Schedule 13E-3.
Item 3. Identity and Background of Filing Person.
- (a)
- Name and Address. The business address and business telephone number of the Company, which is both the subject company and a filing
person, are set forth in Item 2(a) above.
The
executive officers and directors of the Company are set forth below.
Executive Officers
Charles E. Finelli, President, Chief Executive Officer and Secretary
Ling S. Kwok, Vice President, Business Development
Board of Directors
Charles E. Finelli, Chairman
Ling S. Kwok
William T. Comfort III
Robin P. Dummett
The
address of each executive officer and director of the Company is c/o Ergo Science Corporation, 790 Turnpike Street, North Andover, Massachusetts 01845 and the telephone number is
978-688-8833.
2
- (b)
- Business and Background of Entities Other than the Company. Not Applicable.
- (c)
- Business and Background of Natural Persons. The information set forth in Item 3(a) above is incorporated herein by reference. The
information set forth in the Proxy Statement under "Directors and Executive Officers of the Company" is incorporated herein by reference.
During
the last five years, neither the Company nor, to its knowledge, any of the Company's directors or executive officers have been convicted in a criminal proceeding (excluding
traffic violations or similar misdemeanors), or has been a party to any judicial or administrative proceeding (except for matters that were dismissed without sanction or settlement) that resulted in a
judgment, decree or final order enjoining such person from future violations of, or prohibiting activities subject to, federal or state securities laws, or a finding of any violation of such laws. All
of the Company's directors and executive officers are United States citizens other than Mr. Dummett, who is a citizen of the United Kingdom.
Item 4. Terms of the Transaction.
- (a)
- Material Terms. The information set forth in the Proxy Statement under "Summary Term Sheet," "The Special Meeting" and "Special
Factors" is incorporated herein by reference.
- (b)
- Different Terms. Not applicable.
- (c)
- Appraisal Rights. The information set forth in the Proxy Statement under "Special FactorsNo Appraisal or Dissenters'
Rights" is incorporated herein by reference.
- (d)
- Provisions for Unaffiliated Security Holders. No provision has been made to grant unaffiliated security holders access to the Company's
corporate files or to obtain counsel or appraisal services at the Company's expense.
- (e)
- Eligibility for Listing or Trading. Not applicable.
Item 5. Past Contacts, Transaction, Negotiations and Agreements.
- (a)
- Transactions. Not Applicable.
- (b)
- Significant Corporate Events. Not applicable.
- (c)
- Negotiations or Contacts. Not applicable.
- (d)
- Agreements Involving the Subject Company's Securities. Pursuant to the terms and conditions set forth in that certain Purchase
Agreement (the "Purchase Agreement"), dated October 16, 2006, by and between the Company and William T. Comfort III, a stockholder and director of the Company, Mr. Comfort has agreed to
purchase the shares to be converted into the right to receive cash in the transaction at a purchase price of $2.10 per pre-split share. The information set forth in the Proxy Statement
under "Summary Term SheetExchange of Certificates; Payment of Cash Consideration" and "Market for Common Stock and Related Stockholder Matters" is incorporated herein by reference.
Item 6. Purposes of the Transaction and Plans or Proposals.
- (a)
- Use of Securities Acquired. Pursuant to the Purchase Agreement, Mr. Comfort will purchase the shares to be converted into the
right to receive cash in the transaction at a purchase price of $2.10 per pre-split share. The information contained in the sections of the Proxy Statement entitled "Summary Term
SheetExchange of Certificates; Payment of Cash Consideration" and "Special FactorsConduct of the Company's Business after the Transaction" is incorporated herein by
reference.
3
- (b)
- Plans.
- (1)
- None.
- (2)
- The
information set forth in the Proxy Statement under "Special FactorsAsset Disposition Plan" is incorporated herein by reference.
- (3)
- None.
- (4)
- None.
- (5)
- None.
- (6)
- The
information set forth in the Proxy Statement under "Summary Term Sheet," "Special FactorsPurpose and Reasons for the Transaction" and "Special
FactorsCertain Effects of the Transaction" is incorporated herein by reference.
- (7)
- The
information set forth in the Proxy Statement under "Summary Term Sheet," "Special FactorsPurpose and Reasons for the Transaction" and "Special
FactorsCertain Effects of the Transaction" is incorporated herein by reference.
- (8)
- The
information set forth in the Proxy Statement under "Summary Term Sheet," "Special FactorsPurpose and Reasons for the Transaction" and "Special
FactorsCertain Effects of the Transaction" is incorporated herein by reference.
Item 7. Purposes, Alternatives, Reasons and Effects.
- (a)
- Purposes. The information set forth in the Proxy Statement under "Summary Term Sheet," "Special FactorsBackground of the
Transaction" and "Special FactorsPurposes and Reasons for the Transaction" is incorporated herein by reference.
- (b)
- Alternatives. The information set forth in the Proxy Statement under "Special FactorsBackground of the Transaction" and
"Special FactorsAlternatives Considered" is incorporated herein by reference.
- (c)
- Reasons. The information set forth in the Proxy Statement under "Summary Term Sheet," "Special FactorsBackground of the
Transaction" and "Special FactorsPurposes and Reasons for the Transaction" is incorporated herein by reference.
- (d)
- Effects. The information set forth in the Proxy Statement under "Summary Term Sheet," "Summary Financial
InformationSummary Pro Forma Financial Information," "Special FactorsCertain Effects of the Transaction," "Special FactorsU.S. Federal Income Tax Consequences,"
"Special FactorsConduct of the Company's Business after the Transaction," "Special FactorsAsset Disposition Plan" and "Special FactorsAccess to Certain Financial
Information After the Transaction" is incorporated herein by reference.
Item 8. Fairness of the Transaction.
- (a)
- Fairness. The information set forth in the Proxy Statement under "Special FactorsRecommendation of the
Non-Purchasing Directors," "Special FactorsRecommendation of the Board of Directors," "Special FactorsFairness of the Transaction" and "Special
FactorsOpinion of the Financial Advisor" is incorporated herein by reference.
- (b)
- Factors considered in determining fairness. The information set forth in the Proxy Statement under "Special
FactorsRecommendation of the Non-Purchasing Directors," "Special FactorsRecommendation of the Board of Directors," "Special FactorsFairness of the
Transaction" and "Special FactorsOpinion of the Financial Advisor" is incorporated herein by reference.
4
- (c)
- Approval of Security Holders. The Transaction is not structured so that approval of at least a majority of unaffiliated security
holders is required.
- (d)
- Unaffiliated representative. A majority of directors who are not employees of the Company have not retained an unaffiliated
representative to act solely on behalf of unaffiliated security holders for purposes of negotiating the terms of the Rule 13e-3 transaction and/or preparing a report concerning the
fairness of the transaction. The information set forth in the Proxy Statement under "Special FactorsRecommendation of the Non-Purchasing Directors," "Special
FactorsRecommendation of the Board of Directors," "Special FactorsFairness of the Transaction" and "Special FactorsOpinion of the Financial Advisor" is
incorporated herein by reference.
- (e)
- Approval of Directors. The information set forth in the Proxy Statement under "Special FactorsRecommendation of the
Non-Purchasing Directors" and "Special FactorsRecommendation of the Board of Directors" is incorporated herein by reference.
- (f)
- Other offers. Not Applicable.
Item 9. Reports, Opinions, Appraisals and Certain Negotiations.
- (a)
- Report, Opinion or Appraisals. The information set forth in the Proxy Statement under "Special FactorsOpinion of the
Financial Advisor" is incorporated herein by reference.
- (b)
- Preparer and Summary of the Report. The information set forth in the Proxy Statement under "Special FactorsBackground of
the Transaction," "Special FactorsRecommendation of the Non-Purchasing Directors" and "Special FactorsOpinion of the Financial Advisor" is incorporated herein by
reference.
- (c)
- Availability of Documents. The information set forth in the Proxy Statement under "Special FactorsOpinion of the Financial
Advisor" and "Where You Can Find More Information" is incorporated herein by reference. In addition, the full text of the opinion of the financial advisor to the board of directors was attached as
Appendix C to the Proxy Statement and is incorporated by reference herein as Exhibit 16(c). The opinion prepared by the financial advisor will be made available for inspection and
copying at the principal executive offices of the Company during its regular business hours by any interested stockholder or representative of a stockholder designated in writing.
Item 10. Source and Amounts of Funds or Other Consideration.
- (a)
- Source of funds. The information set forth in the Proxy Statement under "Special FactorsSource of Funds and Financing of
the Transaction" is incorporated herein by reference.
- (b)
- Conditions. Not applicable.
- (c)
- Expenses. The information set forth in the Proxy Statement under "Special FactorsSource of Funds and Financing of the
Transaction" is incorporated herein by reference.
- (d)
- Borrowed Funds. Not applicable.
Item 11. Interest in Securities of the Subject Company.
- (a)
- Securities Ownership. The information set forth in the Proxy Statement under "Security Ownership of Certain Beneficial Owners and
Management" is incorporated herein by reference. As applicable, the address for any person required to provide such information pursuant to this Item 11 is c/o Ergo Science Corporation, 790 Turnpike
Street, North Andover, Massachusetts 01845.
- (b)
- Securities Transactions. The information set forth in the Proxy Statement under "Market for Common Stock and Related Stockholder
Matters" is incorporated herein by reference.
5
Item 12. The Solicitation or Recommendation.
- (a)
- Intent to Tender or Vote in a Going-Private Transaction. The information set forth in the Proxy Statement under "Summary Term
SheetVote Required," "The Special MeetingVote Required" and "Special FactorsPurpose and Reasons for the Transaction" incorporated herein by reference.
- (b)
- Recommendations of Others. The information set forth in the Proxy Statement under "Special FactorsRecommendation of the
Non-Purchasing Directors," "Special FactorsRecommendation of the Board of Directors" and "Special FactorsPurpose and Reasons for the Transaction" is incorporated
herein by reference.
Item 13. Financial Information.
- (a)
- Financial Information. The audited financial statements contained in the Company's Annual Report on Form 10-K for
the year ended December 31, 2005, and the unaudited financial statements contained in the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended June 30,
2006 are incorporated herein by reference. The information in the Proxy Statement referred to in "Summary Financial InformationSummary Historical Financial Information," "Documents
Incorporated by Reference," and "Where You Can Find More Information" is incorporated herein by reference.
- (b)
- Pro Forma Information. In accordance with the rules of Regulation S-X of the Exchange Act, the Company has not
included pro-forma financial information to show the effects of (1) the estimated transaction costs to be incurred in connection with the transaction or (2) the estimated
cost savings as a result of ceasing to be an SEC reporting company. No pro-forma financial information is included because the number of outstanding shares of common stock of the Company
will not change and under Regulation S-X of the Exchange Act, we cannot include pro-forma information regarding the expenses to be incurred in connection with the
transaction or the cash savings expected to occur as a result of ceasing to be an SEC reporting company. The information set forth in the Proxy Statement under "Summary Financial
InformationSummary Pro Forma Financial Information" is incorporated herein by reference.
Item 14. Persons/Assets, Retained, Employed, Compensated or Used.
- (a)
- Solicitations or Recommendations. The Company has retained Georgeson Inc. to solicit proxies on its behalf in connection with
the transaction at a cost of $6,000 plus out of pocket expenses. The information set forth in the Proxy Statement under "Cost of Solicitation of Proxies" is incorporated herein by reference.
- (b)
- Employees and Corporate Assets. The Company has retained Georgeson Inc. to solicit proxies on its behalf in connection with the
transaction at a cost of $6,000 plus out of pocket expenses. The information set forth in the Proxy Statement under "Special FactorsSource of Funds and Financing of the Transaction" and
"Cost of Solicitation of Proxies" is incorporated herein by reference.
Item 15. Additional Information.
- (a)
- Other Material Information. The information contained in the Proxy Statement, including all appendices attached thereto, is
incorporated herein by reference.
Item 16. Exhibits.
- (a)
- Preliminary
Proxy Statement on Schedule 14A, as filed with the Securities and Exchange Commission on October 18, 2006, is incorporated herein by reference.
6
- (b)
- Not
applicable.
- (c)
- Opinion
of Slusser Associates, Inc. to the board of directors dated October 10, 2006 (Appendix C to the Proxy Statement on Schedule 14A, as filed with the
Securities and Exchange Commission on October 18, 2006), is incorporated herein by reference.
- (d)
- Purchase
Agreement, dated October 16, 2006, by and between William T. Comfort III and the Company (Appendix D to the Proxy Statement on Schedule 14A, as filed
with the Securities and Exchange Commission on October 18, 2006), is incorporated herein by reference.
- (f)
- Not
applicable.
- (g)
- Not
applicable.
7
SIGNATURE
After due inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.
Date:
October 18, 2006
|
|
ERGO SCIENCE CORPORATION |
|
|
By: |
/s/ CHARLES E. FINELLI Charles E. Finelli Chief Executive Officer |
|
|
By: |
/s/ WILLIAM T. COMFORT III William T. Comfort III
|
8
EXHIBIT INDEX
Exhibit
Number
|
|
Description
|
(a) |
|
Preliminary Proxy Statement on Schedule 14A, as filed with the Securities and Exchange Commission on October 18, 2006, is incorporated herein by reference. |
(b) |
|
Not applicable. |
(c) |
|
Opinion of Slusser Associates, Inc. to the board of directors dated October 10, 2006 (Appendix C to the Proxy Statement on Schedule 14A, as filed with the Securities and Exchange Commission on October 18, 2006), is
incorporated herein by reference. |
(d) |
|
Purchase Agreement, dated October 16, 2006, by and between William T. Comfort III and the Company (Appendix D to the Proxy Statement on Schedule 14A, as filed with the Securities and Exchange Commission on October 18,
2006), is incorporated herein by reference. |
(f) |
|
Not applicable. |
(g) |
|
Not applicable. |
QuickLinks
CALCULATION OF FILING FEE
INTRODUCTION
SIGNATURE
EXHIBIT INDEX