Toronto’s Onex Corp. to buy Husky

After a months-long assessment process of its goals and current position, Husky Injection Molding Systems Ltd.(Bolton, Ont.)has entered into a support agreement whereby private equity investor Onex Corp.(Toronto)will offer to acquire all issued and outstanding common shares of Husky at a price of $8.18 cash per common share. The total equity value of the transaction is approximately $960 million. Figures are all in Canadian dollars.

The $8.18 per share cash consideration represents a 38.6 per cent premium over the closing price of common shares on the Toronto Stock Exchange on March 7, 2007, the last trading day prior to the announcement by Husky of the review.

Robert Schad, Husky’s founder, chairman and controlling shareholder, and his spouse, Elizabeth Schad, have entered into an agreement that provides they will vote 47,705,670 common shares owned by them in favour of the deal. They have also agreed to vote an additional 3,971,713 shares controlled by them.  This represents 44.08 per cent of the issued and outstanding common shares of Husky.

“When we began this process six months ago, my primary concern was to ensure that my stake in Husky would go to the right owner. Having concluded the review process, I am convinced that Onex is the right long-term home for Husky,” said Robert Schad. “They have shown a solid appreciation of Husky’s strategy and strengths, and bring expertise in a number of areas that will help take the Company to the next level.”

Onex Corp. was founded by Gerry Schwartz in 1983, and he is still its chairman and CEO.
www.husky.ca
www.Onex.com