Onex to acquire Husky Injection Molding

Private equity firm Onex Corporation has agreed to acquire Bolton, Ont.-based machinery manufacturer Husky Injection Molding Systems Ltd. for approximately $960 million.

Toronto-based Onex said it would pay Husky investors $8.18 per share in cash for their holdings.

The transaction will be carried out by way of a statutory plan of arrangement that is subject to court, shareholder and normal regulatory approvals. Husky expects to hold a meeting of shareholders to consider the proposal in the first week of December 2007, and if approved, to complete the sale by the middle of the month.

According to Husky, the companys board of directors has unanimously recommended that shareholders endorse the deal.

Robert Schad, Husky’s founder and controlling shareholder, and his spouse, Elizabeth Schad, have agreed to tender their 47.7 million common shares, plus just fewer than four million shares they control. In total, the Schads control 44.08 per cent of the outstanding shares of Husky.

Husky announced back in March 2007 that it was looking for a buyer. 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 Huskys strategy and strengths, and bring expertise in a number of areas that will help take the company to the next level.

Founded by Schad in 1953 as a machine shop in a Toronto garage, Husky currently has more than 40 service and sales offices, supporting customers in over 100 countries. Huskys manufacturing facilities are located in Canada, the United States, Luxembourg and China.