TORONTO (CP) — Husky Injection Molding Systems Ltd. has agreed to be taken over by Onex Corp. (TSX:OCX) for $8.18 per share, or a total of $960 million in cash.
The companies said Friday that Husky founder, chairman and controlling shareholder Robert Schad and his wife, who control 44 per cent the company's stock, have undertaken to accept the proposal.
The $8.18-a-share price is a premium of eight per cent over Husky's closing price Thursday and 39 per cent over its price on March 7 before the company announced it was open to proposals.
''I am convinced that Onex is the right long-term home for Husky,'' stated Schad, 77.
''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.''
The 3,000-employee international maker of factory equipment to produce plastic products ranging from bottles to bumpers consistently ranks among Canada's best places to work and most environmentally conscious companies.
''Husky's management team is excited about partnering with Onex to execute our strategic plan and continue to grow the business,'' stated CEO John Galt.
''I am confident in Husky's long-term strategic direction and look forward to working with Onex in this next phase of our growth.''
Onex, which has $37 billion worth of stakes in companies which include Celestica (TSX:CLS), Spirit AeroSystems, Allison Transmission, Emergency Medical Services, Hawker Beechcraft and Cineplex Entertainment, had said Wednesday it had $2 billion ready to invest and ''opportunities that are just staggering.''
Onex managing director Anthony Munk, son of Barrick Gold chairman Peter Munk (TSX:ABX), said the conglomerate is ''delighted to be partnering with Husky's management team and look forward to building on its history of product innovation and technology leadership.''
Husky, whose plants have pesticide-free landscaping and healthy-food cafeterias, was founded in 1953 as a machine shop after Schad immigrated from Germany.
He failed with his first product, a snowmobile called the Huskymobile, before finding a niche in specialized mould making. The company now claims 70 per cent of the global market for pop-bottle machinery, and has diversified into automotive, packaging and telecommunications applications.
Along with the takeover announcement, Husky, which reports in U.S. dollars, reported that it earned $21.3 million on sales of $263.8 million in its fourth quarter ended July 31, up from $2.2 million on $243 million a year earlier.
On the Toronto stock market Friday morning, Husky shares were up 44 cents at $8.02.