Business
Florida acquistion to support strategic growth of Sun Gro's Bulk Bark Mix business and strengthen south-eastern US market coverage
Florida acquistion to support strategic growth of Sun Gro's Bulk Bark Mix business and strengthen south-eastern US market coverage.
About this update from Coloured Ties Capital Inc
[{"type":"text","content":"\n\n\n\nTrading Symbol: The Toronto Stock Exchange - GRO.UN\n\n\nVANCOUVER, Oct. 1 /CNW/ - Sun Gro Horticulture Income Fund (the Fund)\ntoday announced that it, together with its wholly owned subsidiary, Sun Gro\nHoldings, Inc., will acquire all of the outstanding shares of Grow Best\nHoldings, LLC for US$20.3 million. Grow Best Holdings owns Florida Potting\nSoils, Inc. and Sunshine Peat, Inc., both based in Orlando, Florida. In\naddition to the outstanding shares, Sun Gro Holdings will purchase real estate\nand equipment used in the business for US$2.1 million. The transaction is\nexpected to close later today and will be funded through the issuance of\nUS$2 million of trust units of the Fund and borrowings of US$20.4 million\nunder a new acquisition line of credit.\n\n\nFlorida Potting Soils primarily sells bulk bark growing mixes to\nnurseries in Florida and neighbouring states, and also produces and sells\ncustom sand and peat-based blends for golf course construction and\nmaintenance. It is the largest producer of professional mixes in Florida.\nSunshine Peat harvests "muck" peat from a central Florida bog and supplies it\nto Florida Potting Soils for use as a raw material in custom mixes. This grade\nof peat does not have the same air and water retention characteristics as\nCanadian sphagnum peat but, in mixes for certain applications, it is a\ncost-effective organic supplement. The Florida Potting Soils manufacturing\nfacilities are located near Orlando, Florida and Valdosta, Georgia.\n\n\n"This acquisition will solidify Sun Gro's leadership in the large and\ngrowing Florida horticultural market, which we currently supply with Canadian\nsphagnum peat-based products," said Mitch Weaver, President and CEO of Sun Gro\nHorticulture Canada Ltd. (Sun Gro or the company) and a Trustee of the Fund.\n"It will also put us at the forefront of our industry in the south-eastern\nUnited States. With our acquisitions in California earlier this year, we will\nnow have manufacturing facilities in each of the four largest professional\nmarkets in the US."\n\n\n"The transaction directly supports our strategy to increase our business\nin the bulk bark-based growing media sector, a relatively new and important\nproduct category for Sun Gro," Weaver continued. "By giving us a physical\npresence nea...