On the heels of strong results in the second quarter, Canadian auto parts distributor Uni-Select Inc. reports that it has made an offer to purchase all of the outstanding shares of common stock of Uni-Select USA, Inc.
Uni-Select Inc., through its subsidiary Uni-Select USA Holdings, Inc., is currently the holder of 87% of the outstanding shares of Uni-Select USA, Inc.
The offer provides cash payment of the purchase price and is extended to all shareholders of Uni-Select USA. The offer to purchase the shares will expire at 5:00 p.m., Minneapolis, Minnesota time, on October 1, unless otherwise extended.
In the event that, subsequent to the offer, Uni-Select becomes the holder of more than 90% of the stock of Uni-Select USA, it will buy out all remaining minority shareholders subject to applicable Delaware Statutes.
Members of the Buzzard family that are shareholders of Uni-Select USA to the extent of 10%, have indicated that they will tender their shares and accept the offer. However, Clay Buzzard, a director, remains a significant shareholder of Uni-Select Inc.
Uni-Select noted that full ownership of Uni-Select USA will allow greater flexibility in financial and administrative functions.
Uni-Select Inc. reported sales from continuing operations of $384,161,000 for the second quarter of 2009, up 20.9% over sales of $317,685,000 for the same period of 2008. The company’s sales increase is due mainly to acquisitions conducted in the previous quarters and to the currency variation. Net income from continuing operations reached $16,029,000 or $0.81 per share, for the second quarter, compared with $13,179,000 or $0.67 per share, for the corresponding quarter last year.
Net income, including results from discontinued activities, totalled $15,408,000 or $0.78 per share, compared with $12,689,000 or $0.64 per share last year. Excluding the impact of the exchange rate variation, sales would have risen 12.8% and net income would have been $0.74 a share for the quarter, an increase of 15.6%.
For the first half of 2009, sales for continuing activities reached $735,005,000 an increase of $148,636,000 or 25.3%, compared with the same period in 2008. Earnings from continuing activities stood at $25,023,000 or $1.27 per share, compared with $20,083,000 or $1.02 per share for the first half of 2008.