An agreement to sell Baldwin Technology to investment firm Forsyth Capital Investors gives the quoted press peripherals maker a couple of weeks more to find an alternative purchaser.

But according to UK trade magazine ‘Printweek’, it isn’t likely to happen.

The magazine quotes chief executive Mark Becker saying that considering other bids until January 28 was a legal requirement, but “we feel that the offer being presented is a more than fair”.

Baldwin – which makes a variety of control, cleaning, and peripheral systems, plus UV and IR dryers – lost US$12.1 million in the year to last June, against a $3.5 million profit the previous year.

Becker says the company had been “working aggressively” to resize its global platform, but with money tight it was finding it hard to refinance its main credit facilities. The sale to a new Forsyth subsidiary, Forsyth Baldwin, removes that need.

Baldwin’s share price had fallen to about a third of its May levels, reaching 47 cents in December. The deal,  unanimously approved by Baldwin’s board of directors, values shares at 96 cents in cash, or not less than 90 cents, subject to a formula on cash and payables. The company says this is a premium of approximately 104 per cent over the closing share price on December 22.

The board has until January 28 to “solicit, receive, evaluate and enter into negotiations with respect to” alternative proposals, and will actively solicit these during the period.

Failing a better offer, the transaction is expected to close in the second quarter of 2012, subject to customary approvals and closing conditions.

Becker says the transaction will improve Baldwin's financial strength and enable it to continue to operate effectively in its current markets and beyond. “Forsyth’s financial resources and management experience will accelerate the turnaround of Baldwin already underway,” he says. “We believe this is a strong transaction for our stockholders, employees, customers and other partners."