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FinishMaster Announces Agreement to Be Acquired by Uni-Select

^{Published on 2010-12-09 16:35:35 - Market Wire}
 

INDIANAPOLIS--([ BUSINESS WIRE ])--FinishMaster, Inc. (Pink Sheets: FMST) announced today its Board of Directors has approved an agreement for the company to be acquired by a subsidiary of Uni-Select, Inc. (TSX: UNS) a leader in the distribution of automotive replacement parts, equipment, tools and accessories with North American revenues in excess of $1.3 billion.

"This transaction fits in perfectly with our business plan by significantly expanding our presence in the U.S. Although Uni-Select already distributes paint products, this acquisition will immediately improve the quality and breadth of our offering."

The purchase price is based on an enterprise value of approximately $217 million, less approximately $45 million of net debt and certain transaction costs. This acquisition will be structured as a merger in which the shareholders of FinishMaster will receive $21.00 in cash, without interest, per share, representing a premium of approximately 32% to the 30-day trailing average share price of FinishMaster.

aWe are delighted to be partnered with one of the leading North American automotive replacement parts distributors. By bringing together two companies with complementary product portfolios and common corporate values, this transaction enables us to become the premier aone-stop shopa for body shops in North America. Combining the industry expertise of our two management teams will allow us to further penetrate the market and expand our customer base creating opportunities for FinishMaster associates as well as our suppliers,a said J.A. Lacy, President and CEO of FinishMaster.

aThe acquisition of FinishMaster represents a unique opportunity for Uni-Select to expand its scale in the U.S., enter a complementary market as a leader and enhance its product offering,a said Richard Roy, President and CEO of Uni-Select. aThis transaction fits in perfectly with our business plan by significantly expanding our presence in the U.S. Although Uni-Select already distributes paint products, this acquisition will immediately improve the quality and breadth of our offering.a

FinishMaster will remain a distinct entity within Uni-Select serving the collision repair market. Its headquarters will remain in Indianapolis, Indiana.

About FinishMaster
Founded in 1968, FinishMaster is the largest U.S. independent distributor of automotive paints, coatings and related accessories to the automotive collision repair industry. The Company is headquartered in Indianapolis, Indiana, and operates three major distribution centers and 162 branches in 29 of the 50 largest metropolitan areas in the country. For more information on FinishMaster, visit the companya™s website at [ http://www.finishmaster.com/ ].

About Uni-Select
Founded in 1968, Uni-Select^TM is a Canadian leader in the distribution of automotive replacement parts, equipment, tools and accessories. Uni-Select USA, Inc., a subsidiary of the Company, provides services to customers in the United States, where it is the sixth largest distributor. The Uni-Select Network^TM includes over 2,500 independent jobbers and services 3,500 points of sale in North America. Uni-Select is headquartered in Montreal. Uni-Select shares (UNS) are traded on the Toronto Stock Exchange (TSX). Uni-Select and Uni-Select Network are trademarks owned by Uni-Select, Inc. For more information on Uni-Select, visit the companya™s website at [ http://www.uniselect.com/eng/ ].

Forward-Looking Statements
All statements other than statements of historical fact included in this news release are forward-looking statements made in good faith by the company and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Such statements are based on managementa™s beliefs, as well as assumptions made by and information currently available to management and include such words as abelieve,a aanticipate,a aendeavor,a aestimate,a aexpect,a aobjective,a aprojection,a aforecast,a agoal,a alikely,a and similar expressions intended to identify forward-looking statements. FinishMaster cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond FinishMastera™s ability to control or estimate precisely and actual results could differ materially from those contained in this document. You should not place undue reliance on these forward-looking statements. All of these forward-looking statements are based on our expectations as of the date of this news release. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.