Ohio public company going private to avoid SOX?

• Position: Ohio

Ohio-based Waxman Industries is exploring going private in order to avoid the costs of compliance associated with Sarbanes-Oxley (SOX), according to an article in the Cleveland Plain Dealer.

The added costs of compliance associated with SOX have caused a dilemma for many small to mid-sized public companies. Many have decided to simply return to private ownership. Such is the case with Waxman Industries. The Bedford Heights company will ask shareholders to approve the motion to go private at its annual meeting in April.

SOX was intended to improve corporate controls on publicly traded companies, but the costs associated with following the new regulations have proven too burdensome for many smaller public companies--including Waxman. The maker of plumbing-repair and floor-care products, with two plants in...