HUSKY
Investor Onex makes CAD 960m bid / Founder Schad prepared to sell stake / “Strategic plan”
Canadian private equity investor Onex (Toronto; www.onex.com) has made a CAD 8.18 (USD 8.25) per share cash offer for injection moulding technology leader Husky (Bolton, Ontario / Canada; www.husky.ca). This values Husky at CAD 960m, a 38.6% premium over the closing price on 7 March 2007, when the company engaged investment banker Citigroup Global Markets to review options for a sale – see Plasteurope.com of 16.03.2007.
Husky’s 77-year old founder and controlling shareholder Robert Schad and his wife have agreed to sell their 44.08% stake in the machinery manufacturer. The board of directors, headed by Schad, also has unanimously endorsed the bid, which will be put to shareholders for a vote on 6 December 2007. If approved, the transaction will close in mid-December.
Schad said he is “convinced that Onex is the right long-term home for Husky,” as it has shown a “solid appreciation” of the company’s long-term strategic direction that will help take it “to the next level.” CEO John Galt said the takeover will allow management to “execute our strategic plan and continue to grow the business.” The private equity group founded in 1983 has USD 2.1 bn in “committed third-party capital” to invest, including USD 1 bn of its own funds, chief financial officer Ewoult Heersink told a recent investor’s conference.
Announcing the Husky review in March, Galt hinted that production could be moved out of Canada, which had become too costly. He pointed also to the weakness of the US dollar and the North American market. The machinery manufacturer has been targeting mainly expansion in Asia, although in a deal due set to close in Q4 2007 it is acquiring the manufacturing solutions division of Moldflow Corporation (Wayland, Massachusetts / USA; www.moldflow.com) for USD 7m – see Plasteurope.com of 03.07.2007.
For fiscal 2006/2007 (31 July), Husky reported a 62.5% rise in net income year-on-year to USD 41.7m (USD 25.7m). Sales rose 15% to USD 1.08 bn (USD 935m). Europe’s share of the sales total increased to 37% from 33% in fiscal 2006, while North America’s stake fell to 35% (39%). Asia-Pacific accounted for 19% (18%), Latin America for 9% (10%). The company took in new orders worth USD 1.2 bn (USD 964m).
Husky’s 77-year old founder and controlling shareholder Robert Schad and his wife have agreed to sell their 44.08% stake in the machinery manufacturer. The board of directors, headed by Schad, also has unanimously endorsed the bid, which will be put to shareholders for a vote on 6 December 2007. If approved, the transaction will close in mid-December.
Schad said he is “convinced that Onex is the right long-term home for Husky,” as it has shown a “solid appreciation” of the company’s long-term strategic direction that will help take it “to the next level.” CEO John Galt said the takeover will allow management to “execute our strategic plan and continue to grow the business.” The private equity group founded in 1983 has USD 2.1 bn in “committed third-party capital” to invest, including USD 1 bn of its own funds, chief financial officer Ewoult Heersink told a recent investor’s conference.
Announcing the Husky review in March, Galt hinted that production could be moved out of Canada, which had become too costly. He pointed also to the weakness of the US dollar and the North American market. The machinery manufacturer has been targeting mainly expansion in Asia, although in a deal due set to close in Q4 2007 it is acquiring the manufacturing solutions division of Moldflow Corporation (Wayland, Massachusetts / USA; www.moldflow.com) for USD 7m – see Plasteurope.com of 03.07.2007.
For fiscal 2006/2007 (31 July), Husky reported a 62.5% rise in net income year-on-year to USD 41.7m (USD 25.7m). Sales rose 15% to USD 1.08 bn (USD 935m). Europe’s share of the sales total increased to 37% from 33% in fiscal 2006, while North America’s stake fell to 35% (39%). Asia-Pacific accounted for 19% (18%), Latin America for 9% (10%). The company took in new orders worth USD 1.2 bn (USD 964m).
02.10.2007 Plasteurope.com [209182]
Published on 02.10.2007
German version of this article...