Sun Gro Horticulture agrees to takeover by IKO Enterprises

Sun Gro Horticulture Inc., formerly Sun Gro Horticulture Income Fund, has entered into a support agreement with IKO Enterprises Ltd. Pursuant to the support agreement, IKO has agreed, subject to certain conditions, to make an offer to acquire all of the issued and outstanding common shares of Sun Gro, other than shares held by IKO and its affiliates and joint actors, for a price per share of C$6.60 in cash. IKO and its affiliates and joint actors currently own or control approximately 19% of Sun Gro’s outstanding shares.
The offer will be effected by way of a takeover bid. Full details of the offer will be contained in a formal offer and takeover bid circular, which is expected to be mailed to Sun Gro shareholders before February 2011. The transaction is expected to close in March 2011. The proposed sale of Sun Gro to IKO follows the formal review of strategic alternatives commenced by Sun Gro in September 2010 in order to enhance shareholder value.