Uni-Select Inc. has signed a friendly agreement with FinishMaster Inc. to buy the U.S. independent distributor of automotive paints and coatings. Total deal value is $219-million.
Adding a complementary business line is a smart deal for Uni-Select. The Canadian company currently distributes automotive replacement parts, equipment and tools. Now they can add paint and coating to that list.
FinishMaster holders will get $21.00 (U.S.) a share in cash, a 32 per cent premium to their 30-day trailing average price.
To finance the deal, Uni-Select tapped the market and raised $90-million through a combination of subscription receipts and convertible debt -- $45-million each. The converts pay 5.9 per cent annually. National Bank Financial led the financing and also provided both a $200-million credit facility and a $200-million term loan.
Converts are all the rage these days. Southern Pacific Resource Corp. sold $125-million Friday morning in a deal co-led by BMO Nesbitt Burns, RBC Dominion Securities and Credit Suisse. On Thursday Anderson Energy Ltd. sold $50-million, again co-led by BMO and RBC.Report Typo/Error
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