Georgia Gulf agrees to purchase Royal Group Technologies
Canadian PlasticsCanadian Plastics
Woodbridge, Ont.-based polymer processor and extruder Royal Group Technologies (RGT) announced that it has reached ...
Woodbridge, Ont.-based polymer processor and extruder Royal Group Technologies (RGT) announced that it has reached an agreement with chlorovinyl and aromatics manufacturer Georgia Gulf Corporation to acquire all of RGT’s common shares at a price of Cdn. $13.00 per share.
The total value of the transaction, including debt, will be Cdn. $1.7 billion (US $1.5 billion).
“This transaction creates significant immediate value for Royal Group’s shareholders and strengthens the company’s business through a combination with a strong, technologically advanced force in the vinyl industry,” Robert E. Lamoureux, RGT’s chairman of the board and chair of directors, said.
The all-cash transaction represents a 43.5% premium over RGT’s closing share price on the Toronto Stock Exchange of Cdn. $9.06 per share on June 8, 2006.
“We are pleased to have a significant premium to the current share price offered to our shareholders,” RGT president and CEO Lawrence J. Blanford said.
The sale is dependent upon approval of 66 2/3% of RGT’s shareholders, who are scheduled to meet in July, as well as upon court approval.
RGT has been involved in a sale process since May of 2005, when it announced that it would solicit bids from potential acquirers.
Headquartered in Atlanta, Ga., Georgia Gulf has operations at 9 locations in the U.S., and employs approximately 1,100 people.