Business
Sun Gro Horticulture Income Fund Forms Special Committee to Evaluate Strategic Alternatives
Sun Gro Horticulture Income Fund Forms Special Committee to Evaluate Strategic Alternatives
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[{"type":"text","content":"\n\n\n\n Sep. 7, 2010 (Canada NewsWire Group) -- \n\n \n \n \nTR.cnwUnderlinedCell TD {\n BORDER-BOTTOM: #000000 1px solid\n}\nTR.cnwDoubleUnderlinedCell TD {\n BORDER-BOTTOM: #000000 3px double\n}\nTR.cnwBoldUnderlinedCell TD {\n BORDER-BOTTOM: #000000 3px solid\n}\nTD.cnwUnderlinedCell {\n BORDER-BOTTOM: #000000 1px solid\n}\nTD.cnwDoubleUnderlinedCell {\n BORDER-BOTTOM: #000000 3px double\n}\nTD.cnwBoldUnderlinedCell {\n BORDER-BOTTOM: #000000 3px solid\n}\n\nTRADING SYMBOL: Toronto Stock Exchange - GRO.UN\n\nVANCOUVER, Sept. 7 /CNW/ - Sun Gro Horticulture Income Fund ("Sun Gro"), North America's largest producer and distributor of horticultural-grade peat moss and bark-based growing mixes, today announced that it has established a Special Committee of the Board of Trustees to explore strategic alternatives aimed at enhancing unitholder value. These alternatives may include, but are not limited to, the possible sale of Sun Gro, a merger or other business combination, or a sale of all or a substantial portion of Sun Gro's assets. It is the Board's belief that Sun Gro's unit price has not reflected the underlying value of Sun Gro's business for a significant period of time, and that the current price does not appropriately reflect its assets, brands and distribution capabilities, combined with the full impact of continuing business improvements and growth initiatives. Therefore, the Board has concluded that it is in the best interests of all Sun Gro unitholders to conduct an orderly and comprehensive review and evaluation of its available strategic, operational and financial alternatives.\nThe Special Committee is comprised of Craig Graham, David Sutin and John McLaughlin. The Special Committee has engaged Blair Franklin Capital Partners as financial advisor to assist in its review.\nIn addition, subject to TSX acceptance, the Board has adopted a Unitholder Rights Plan (the "Rights Plan"). The Rights Plan is designed to allow the Board of Trustees and unitholders sufficient time to consider fully any potential transaction involving the acquisition of 20% or more of the outstanding units and, if appropriate, for the Board of Trustees to seek alternatives to such a transaction. The Rights Plan will also prevent an acquirer from gaining control of Sun Gro without paying unitholders an appropriate control premiu...