Wednesday, January 2, 2013
Business Stephens sells Viking Range Corp. ahead of tax rise
Posted by Max Brantley on Wed, Jan 2, 2013 at 6:45 AM
The Little Rock-based Stephens Group has sold its controlling interest in Viking Range Corp as part of a sale of the company to Middleby Corp. for $380 million.
Stephens invested in the company 20 years ago and it has flourished since. It has been mentioned as a takeover target before
I got a tip last week that the deal was in the works and inquired at Stephens, but was told there was nothing to announce. Announcements came New Year's Eve. The deal includes the Greenwood, Miss., manufacturer, its cooking schools and its AlluvianHotel there.
If my tip on the sale was correct — and it was — I suspect accuracy, too, for the tip that an urgency to complete the deal was related to expected action in Congress on a tax increase bill.
Passage of the bill means an increase in the capital gains tax on sale of long-term assets in 2013.
The tax rate on capital gains will increase from 15 to 20 percent and there's an additional 3.8 percent surcharge for Medicaid for high income taxpayers on certain investment income. This produces, effectively, a 23.8 percent capital gains tax rate versus a 15 percent rate previously. It is a significant bump, needless to say. I think it is also safe to say Stephens boss Warren Stephens makes somewhere north of $250,000, where the Medicaid surcharge kicks in, and $450,000, where the basic capital gains tax rate kicks in.
Fred Carl Jr., founder of Viking and also a shareholder, will continue as CEO for a period of time, news accounts say.
Speaking of...
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Little Rock Athletic Club, 3 others sold to group including Stephens members
April 1, 2013An e-mail from Pat Riley Jr. announces the sale of the Little Rock Athletic Club, effective today, to a group of executives from Stephens Inc., led by Brad Eichler. /more/
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Warren Stephens: All business
March 28, 2013Says Main Street needs private dollars to boom. /more/
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QQA statement on Cantrell tear-downs
February 26, 2013The Quapaw Quarter Association has issued a press release on its unsuccessful efforts to stave off the demolition of the Bruner House at 1415 Cantrell Road and the house next door, at 1407 Cantrell, including two letters it wrote the Episcopal Collegiate School and Stephens Inc. /more/
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