Sun-Rype Products Ltd. (TSX:SRF) said Thursday it has entered into an agreement with its majority owner Great Pacific Industries Inc. to privatize the company.

The snack and juice maker said the deal is worth $94 million, and includes the assumption of debt and liabilities.

Great Pacific Industries Inc., a member of The Jim Pattison Group, and SRF Acquisition Inc., a wholly-owned subsidiary, will pay $7.50 per share for the stake it does not already own. Great Pacific and its affiliates currently own a 54 per cent stake in Sun-Rype or roughly 5.82 million shares.

Sun-Rype said this offer is a 20 per cent premium on the weighted average trading price of the stock.

It still needs to pass regulatory approvals, and also be voted on by shareholders at a special meeting scheduled on or about Sept. 24.

The proposal was first announced on June 28 (see below).

 

Sun-Rype Products Ltd has received a proposal from Great Pacific Industries Inc. to take the company private in a deal valued at about C$37 million.

The Jim Pattison Group, which owns well known entertainment brands such as ‘Ripley’s Believe It or Not!’ and ‘Guinness World Records’ already owns 54% of Sun-Rype’s common shares.

Under the proposal would receive C$7.50 cash for each Sun-Rype common share, a 30 percent premium over Friday closing price.

Jim Pattison is a Canadian billionaire and sole owner of The Jim Pattison Group, one of the country’s largest privately held companies. The group owns television and radio stations, car dealerships and grocery store chains, among a host of other businesses.

Shares of Kelowna, British Columbia-based Sun-Rype closed down about 5 percent at C$5.76 on the Toronto Stock Exchange