Business
Sun Gro continues to increase California production capacity
Sun Gro continues to increase California production capacity.
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, Jan. 24 /CNW/ - Sun Gro Horticulture Income Fund (the Fund)\ntoday announced that its wholly owned subsidiary, Sun Gro Horticulture Canada\nLtd. (Sun Gro or the company), has acquired all of the operating assets of\nSanta Maria, California horticultural growing mix producer, Kellogg-Rich Grow,\nLLC. for US $0.9 million. In addition, Sun Gro purchased product inventory on\nhand for US $0.2 million.\n\n\nThe transaction, which closed on January 23, 2007, is Sun Gro's second\nacquisition in California in less than two weeks. On January 16, 2007, the\ncompany acquired all of the outstanding shares of Sacramento horticultural\ngrowing mix and bark producer, Sun-Up Horticulture for US $4.3 million.\n\n\nThe Kellogg-Rich Grow acquisition adds a modern peat-mixing plant to Sun\nGro's North America-wide network of 20 production facilities, three of which\nwere acquired as part of the earlier Sun-Up Horticulture transaction. The four\nnewly added plants have significantly enhanced Sun Gro's ability to target\ngreenhouse growers, ornamental nurseries, landscapers, vegetable transplant\ngrowers and retailers throughout California. The plant acquired yesterday is\nlocated in the state's Central Coast region and will complement the inland\nsites acquired earlier in the month.\n\n\n\"These two acquisitions are allowing us to realize our long-term goal of\nincreased participation in the largest horticultural market in North America,\"\nsaid Mitch Weaver, President and CEO of Sun Gro and a Trustee of the Fund.\n\"The new plants are ideally situated to boost our share of both the\nprofessional and retail growing mix markets in California.\"\n\n\nThe Kellogg-Rich Grow acquisition was funded through Sun Gro's existing\nacquisition line of credit and is expected to be modestly accretive to the\nFund's unitholders this year. The new Santa Maria mix plant is expected to add\napproximately US $3.0 million to the company's 2007 sales.\n\n\nIncome Fund Profile\n\n\nSun Gro Horticulture Income Fund was launched with the completion of an\nInitial Public Offering of 22,023,000 trust units on March 27, 2002. The Fund\nis dependent on Sun Gro's operations, with monthly distributions to its unit\nholders based entirely on Sun Gro's performance.\n\n\nCompany Profile\n\n\nSun Gro was fou...