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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) November 12, 1998
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The Maxim Group, Inc.
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(Exact name of registrant as specified in its charter)
Delaware 1-13099 58-2060334
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(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
210 TownPark Drive, Kennesaw, Georgia 30144
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (678) 355-4000
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Not applicable
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS.
On November 12, 1998, The Maxim Group, Inc. ("Maxim") and its
wholly-owned subsidiary, Image Industries, Inc. ("Image"), entered into an Asset
Purchase Agreement (the "Asset Purchase Agreement") with Aladdin Manufacturing
Corporation ("Aladdin"), a wholly-owned subsidiary of Mohawk Industries, Inc,
pursuant to which Maxim and Image have agreed to sell substantially all of the
assets of Image to Aladdin. The transaction is valued at approximately $232
million, including the assumption by Aladdin of approximately $52 million of
Image liabilities. The transaction price was determined through arms-length
negotiations between the Maxim and Mohawk. The Company has obtained a fairness
opinion from its financial adviser,NationsBanc Montgomery Securities, LLC, which
states that the consideration to be received by the Company pursuant to the
transaction is fair to the Company from a financial point of view.
Image is a leading plastic recycler and manufacturer of polyester fiber
and carpet with annual sales of approximately $190 million. Image primarily
manufactures polyester residential carpet and has vertically integrated its
operations into the extrusion of polyester fiber from discarded plastic soda
bottles.
The transaction is subject to the receipt of appropriate regulatory
approvals and the satisfaction of certain other conditions contained in the
Asset Purchase Agreement.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits:
2.1 - Asset Purchase Agreement, dated as of November 12, 1998, by
and among The Maxim Group, Inc., Image Industries, Inc. and
Aladdin Manufacturing Corporation.
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SIGNATURES
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.
THE MAXIM GROUP, INC.
By: /s/ Thomas P. Leahey
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Thomas P. Leahey
Executive Vice President, Finance
Dated: November 17, 1998
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EXHIBIT INDEX
EXHIBIT NO. Description of Exhibit
2.1 Asset Purchase Agreement, dated as of November 12, 1998, by
and among The Maxim Group, Inc., Image Industries, Inc. and
Aladdin Manufacturing Corporation.