Business
Clarke announces sale of Sure-Gro
Clarke announces sale of Sure-Gro
About this update from Clarke Inc.
[{"type":"text","content":"\n\n\n\nHALIFAX, Apr. 8, 2010 (Canada NewsWire Group) -- /CNW/ -- Clarke Inc. (\"Clarke\" or the \"Company\", TSX-CKI, TSX-CKI.DB, TSX-CKI.DB.A) announced today that Sure-Gro Holdings Inc. has reached a definitive agreement to sell its operating subsidiary, Sure-Gro Inc. (\"Sure-Gro\") to a strategic buyer. Sure-Gro is a leading supplier in the Canadian Home & Garden industry across a broad range of product categories including fertilizer, grass seed, controls, horticulture and ice melt, under brand names such as CIL, Golfgreen, Nature Mix, Green Earth, Wilson and Alaskan Ice Melter. The transaction is expected to close on Friday April 9.Total proceeds to Clarke are expected to consist of approximately $10.4 million in cash and $3.1 million in 8% notes maturing in October 2012. Clarke will also retain ownership of certain assets, including real estate, with an estimated market value to Clarke of approximately $0.8 million. Clarke has a total investment in Sure Gro Holdings Inc. of approximately $5.8 million, through a combination of debt and equity.Rob Normandeau, President of Clarke, commented \"Sure-Gro has been a tremendous investment for Clarke that provided our team with the opportunity to be directly involved in the successful turnaround of a business with meaningful market position and scale. I would like to recognize Sure-Gro management and our equity partner, Roycap Merchant Banking Group, for their hard work and dedication. We wish the new owners and all of the employees the best as they continue with the business.\"About ClarkeHalifax-based Clarke Inc. invests in undervalued businesses and participates actively where necessary to enhance performance and increase return. Clarke's securities trade on the Toronto Stock Exchange (CKI, CKI.DB; CKI.DB.A); for more information about Clarke Inc., please visit our website at www.clarkeinc.com.Forward-Looking StatementsThis press release may contain or refer to certain forward-looking statements relating, but not limited to, Clarke's expectations, intentions, plans and beliefs with respect to Clarke. Often, but not always, forward-looking statements can be identified by the use of words such as \"plans\", \"expects\", \"does not expect\", \"is expected\", \"budget\", \"estimates\", \"forecasts\", \"intends\", \"anticipates\" or \"does not anticipate\", or \"believes\", or equiv...