VANCOUVER‑Sun Gro Horticulture Inc. (TSX: Gro) plants to enter into a support agreement with IKO, a Calgary-based privately-held manufacturing and distribution company. Should the agreement be finalized, IKO will make an offer to acquire outstanding common shares of Sun Gro for $6.60 a share. Sun Gro pursued the sale in September in order to enhance shareholder value.
Sun Gro is the largest distributor of peat and bark-based growing mixes to professional plant growers in the U.S and Canada. It also has a line of sand-based mixes for golf-course developments and has 25 plants across North America.
IKO specializes in manufacturing and supplying commercial and residential roofing, waterproofing and insulation board products. It currently employs about 3000 people and has more than 20 plants worldwide.
Complete details of the transaction are being contained in a formal offer and takeover bid that will circulate to Sun Gro shareholders by February. The deal is expected to close by March.