Greystone buying H&L from GraceKennedy
GraceKennedy has disclosed that it is selling its 58.1 per cent stake in Hardware & Lumber Limited to Greystone Equity Partners Inc and/or its nominee at a maximum price of $18.50 per share.
The nominee is Argyle Industries (Jamaica) Limited.
At the maximum price, the transaction puts a 50 cent premium on H&L’s stock at the close of market trading on Tuesday.
Greystone is a private equity firm founded and managed by Marcus Richards. Its other principals are chairman Glegg Watson and director Ervil Spencer.
GraceKennedy’s group CEO, Don Wehby, said the sale agreement was still conditional, but that the transaction was expected to be completed by the end of July.
“GraceKennedy is looking forward to the conclusion of the transaction in a timely manner and will communicate further as soon as it is finalised,” Wehby said in a statement.
“We feel very positive about the continued growth of H&L under the prospective new owners who have signalled that they are excited about the possibilities for the future”.
At $18.50 per share, GraceKennedy would gross $869 million from the sale.
H&L is the operating company for hardware retailer Rapid True Value and for Agro Grace, a supplier of agricultural products.