Its Sold! $1.50 per share. Wish I had bought more
EDMONTON, ALBERTA--(Marketwire - Dec. 4, 2012) - COMMERCIAL SOLUTIONS INC. ("Commercial" or "Company") (TSX:CSA), a leading Canadian distributor of bearings, power transmission equipment, oilfield, industrial, and safety products, is pleased to announce it has entered into a letter of intent (the "LOI") with Industrial Distribution Group, Inc. ("IDG"), pursuant to which IDG or its affiliate, subject to certain conditions, would acquire all of the issued and outstanding common shares (the "Common Shares") of the Company for a cash purchase price based on an enterprise value of CAD$51.38 million, which represents, after deducting the Company's indebtedness and subject to transaction expenses, approximately CAD$1.50 in cash per Common Share representing approximately an 87% premium over the closing price of the Common Shares on the TSX on December 4, 2012. The transaction would be implemented by way of a statutory plan of arrangement.
Completion of the proposed transaction is subject to certain conditions including, but not limited to, the execution of a definitive binding arrangement agreement, approval of the Board of Directors of IDG, the approval of at least 66 and 2/3% of the votes cast in person or by proxy at a special meeting of the Company's shareholders, and regulatory and court approval.
The Board of Directors of the Company unanimously approved the LOI. Mr. Jim Barker, President and Chief Executive Officer of the Company, commented, "This transaction brings our shareholders significant value and opportunity for our organization to integrate with a North American leader to provide a strong platform for enhanced client service and expanded opportunities for our employees."
Mr. Scott F. Prince, the lead director of IDG's Board of Directors, added, "The combination of Commercial's leading position in Western Canada and IDG's strong management team, deep products expertise, and world-class Integrated Supply Chain solutions will create value for customers throughout the Canadian and North American markets."