SCHEDULE 14A
INFORMATION
Proxy Statement
Pursuant to Section 14(a) of the Securities Exchange Act of 1934
Filed by the Registrant [X]
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a Party other than the Registrant [ ]
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Preliminary
Proxy Statement |
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for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) |
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Definitive
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[X] |
Definitive
Additional Materials |
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Soliciting
Material under Rule 14a-12 |
JOHNSON OUTDOORS INC.
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(Name of Registrant as Specified in its Charter)
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(Name of Person(s) Filing Proxy Statement if other than the Registrant)
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appropriate box):
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computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. |
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Title
of each class of securities to which transaction applies: |
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Aggregate
number of securities to which transaction applies: |
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Per
unit price or other underlying value of transaction computed pursuant to
Exchange Act Rule 0-11 (Set forth the amount on which the filing fee
is calculated and state how it was determined): |
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Proposed
maximum aggregate value of transaction: |
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paid previously with preliminary materials. |
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box if any part of the fee is offset as provided by Exchange Act Rule
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previously. Identify the previous filing by registration statement number, or
the Form or Schedule and the date of its filing. |
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Filed by Johnson
Outdoors Inc.
On
March 21, 2005, a letter from Roger Caron and Gordy Kacala appeared in the Racine Journal
Times. The letter was titled Community Matters: Johnson Outdoors Attempt to Go
Private Affects Us All. A copy of the letter follows as part of this filing under
Rule 14a-6 of the Securities Exchange Act of 1934, as amended.
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COMMUNITY MATTERS:
JOHNSON OUTDOORS ATTEMPT TO GO PRIVATE AFFECTS US ALL
by
Roger Caron and
Gordy Kacala
Many area residents who dont
hold stock in Johnson Outdoors Inc. may be unaware that the company is engaged in a battle
with hedge funds, arbitrageurs and other short term investors to take the company private
after operating as a public company for the past 18 years. What is at stake and
what could potentially be determined by a small number of these Wall Street investors who
have no ties to our community and are solely concerned with their own short-term financial
gain is nothing less than the continued ability of Johnson Outdoors to remain a
vital contributor to and participant in the economic growth and development of
Southeastern Wisconsin. That is why it is so critical that all community residents who
hold stock in Johnson Outdoors vote their shares in advance of companys special
shareholder meeting on Tuesday, March 22, when the outcome of the proposed going-private
transaction will be determined.
Individuals close to the company have
characterized the local retail vote that has come in thus far as being almost uniformly in
favor of the companys $20.10 cash per share offer. However, a number of the
out-of-town fast money investors who now hold a significant percentage of the
companys outstanding shares have indicated that they intend to vote against the
proposed merger because they arent satisfied with the premium that is being offered.
These individuals and funds, many of
whom bought Johnson Outdoors stock only after the Johnson familys original
February 2004 offer put the stock in play and pushed it up to a price well
beyond its historical trading levels, can afford to take the risk and absorb the small (to
them) loss they will incur if the going-private transaction is not approved and, as is
likely, the stock price falls substantially. But what about area shareholders and
employees, many of whom have held the stock for many years some since the
companys IPO in 1987? Why should they be deprived of fair, guaranteed value for
their investment in Johnson Outdoors because a handful of opportunistic investors believe
that the Johnson family should pay them more for their recently-acquired shares than an
offer price that the companys independent directors, their outside financial advisor
and the Johnson Outdoors board believe to be fair? The position of these investors seems
even more untenable when you consider the fact that, in the five years prior to the
familys initial offer last February, Johnson Outdoors stock never traded above
the $20.10 offer price. Whats more, 93.3% of the volume of its shares traded at or
below $17 per share during that same time period.
Recently, Institutional Shareholder
Services, the nations leading independent proxy advisory firm, which advises many
institutional investment firms and mutual funds how to vote their shares in these types of
situations, also weighed in in support of the going-private transaction. They issued a
recommendation that Johnson Outdoors shareholders vote in favor of the proposed
transaction, noting that based on their independent review of the terms of the
transaction, . . . in particular the premium paid to current shareholders and the
procedural safeguards taken in negotiating the terms, the offer warrants support.
Glass Lewis & Co., the other leading independent proxy advisory service, has also just
recommended a vote in favor of the proposed transaction.
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Above and beyond the fact that area
shareholders may not have the opportunity to receive $20.10 for their shares at any time
again in the near future if these opportunistic investors have their way, there is also
the larger issue of how Johnson Outdoors and, by extension, our community
will fare if, as a result of the vote, it is forced to remain a public company.
Johnson Outdoors management
team has been very clear about the fact that they believe the lower costs and greater
flexibility and operating freedom they will gain as a private company will significantly
enhance the companys long-term business prospects. Because the Johnson family has a
controlling ownership stake in the company, they have the final say should the
company remain public and if its stock price were to languish as a result of poor
performance going forward as to whether they would entertain an alternative
transaction, such as a sale, which for now they have indicated they will not consider. But
even absent that event, which would certainly have a negative impact on the local economy,
the prospect of Johnson Outdoors experiencing reduced growth and profitability or failing
to achieve its long-term performance goals will also hurt the greater Racine community.
For these reasons, it is important
that area shareholders, including Johnson Outdoors employees who hold stock in the
company, make sure that they cast their vote on the proposed transaction in advance of
Tuesdays important meeting. Because of the high hurdle a 66 2/3 affirmative
vote of all shares not held by the Johnson family, its affiliates and associates is
required for approval of the merger agreement this is a situation where every vote
counts, and a failure to vote is the same as a vote against the transaction.
Ask yourself whether its right
that a handful of non-local investors with a large concentration of Johnson Outdoors
shares could potentially determine the outcome of this vote when approximately 70% of the
companys public shareholders live in Wisconsin and will, unlike these outside
investors, be directly affected by both the short-and long-term impact of next
Tuesdays results. This decision is too important to leave in the hands of
shareholders who dont have any real interest in the long-term prospects of Johnson
Outdoors and dont know or care about the role that Johnson Outdoors has played in
our community as an employer, an innovator and a community benefactor since 1970.
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