Peat producer Sun Gro Horticulture has entered into a support agreement with IKO Enterprises, a privately held Canadian company that produces and distributes roofing, waterproofing and insulation board products.
IKO has agreed to make an offer to acquire all of the issued and outstanding common shares of Sun Gro, other than shares IKO already holds. IKO will acquire Sun Gro for $6.60 per share. Currently, IKO and its affiliates own or control about 19 percent of Sun Gro’s outstanding shares. The transaction is expected to close in March 2011.
“We are satisfied that the transaction with IKO results in the best value available to our shareholders,” says Mitch Weaver, president and CEO of Sun Gro and a member of its board of directors.
Adds Derek Fee, manager of corporate communications for IKO: “We are very pleased to be increasing our ownership interest in Sun Gro and look forward to building on this outstanding company’s more than 80 years of leadership and innovation in the growing media industry.”