Wednesday, January 2, 2013

Stephens sells Viking Range Corp. ahead of tax rise

Posted By on Wed, Jan 2, 2013 at 6:45 AM

I mentioned a rush to do year-end business deals. Here's one that got done in the final hours of 2012.

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.

Tags: , , , ,


Speaking of...

Comments (7)

Showing 1-7 of 7

Add a comment

Subscribe to this thread:
Showing 1-7 of 7

Add a comment

More by Max Brantley

  • Arkansas Supreme Court denies rehearing in death penalty challenge, but delays mandate

    The Arkansas Supreme Court today refused to rehear the case denying Death Row inmates information about drugs used by the state in the lethal injection process.
    • Jul 21, 2016
  • Welspun layoffs: Another example of corporate welfare folly

    Layoffs at the Welspun pipe plant in Little Rock are a reminder of the folly of corporate welfare and the inability of Arkansas to separate itself from global economic forces. See the Fayetteville shale. And keep a watchful eye on that Sun Paper pulp mill proposed near Arkadelphia.
    • Jul 21, 2016
  • Hamburg bank manager gets 21 months for theft

    Melinda Gwin, 49, of Hamburg has been sentenced to 21 months in federal prison and ordered to repay $210,875 stolen from the First National Bank of Crossett. She was sentenced in El Dorado federal court, according to a Justice Department news release.
    • Jul 21, 2016
  • More »

Readers also liked…

  • SWEPCO drops power line project across Ozarks

    Southwestern Electric Power Company announced in a news release today that it is dropping plans for a $116 million power line across Northwest Arkansas because the project is no longer needed. It would have covered 60 miles between Benton and Carroll Counties.
    • Dec 30, 2014
  • Womack again will try flag desecration ban

    U.S. Rep. Steve Womack of Rogers announced in a news release yesterday that he would try again to get the U.S. Constitution amended to allow criminalizing of U.S. flag desecration.
    • Jan 8, 2015
  • Leslie Rutledge fires almost two dozen to begin tenure as attorney general

    Leslie Rutledge, who takes office as attorney general today, began work in earnest yesterday by firing almost two-dozen members of the existing attorney general's staff.
    • Jan 13, 2015

Most Shared

  • Best of Arkansas 2016

    Readers elect their favorites.
  • Hillary hit jobs

    It's always been my conviction that if Hillary Clinton could be appointed president, she'd do a bang-up job. Getting elected, however, might prove more difficult.
  • These Hogs won't be thin

    This may be the strongest returning receiving corps that the Razorbacks have fielded in the post-Petrino days.
  • Trump-Putin 2016

    Among the thousand bizarre aspects of the presidential campaign has been the Donald Trump-Vladimir Putin axis.

Most Recent Comments



© 2016 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation