MONTREAL – GLV Inc.’s founding Verreault family has agreed to pay $67 million for the company’s pulp and paper division, up from an earlier agreement for $65 million, the company said Monday.
The increase follows a search by the water treatment and forestry company for a higher bid. It contacted 25 prospective buyers, including nine that received additional information after signing confidentiality agreements.
Although a higher bid did not surface, GLV’s (TSX:GLV.A) independent board committee requested and obtained the $2-million increase.
Under the agreement, GLV will receive $62 million and transfer $2 million of debt at closing and be paid the rest over 42 months.
A special shareholders meeting will vote on the deal Friday.
GLV which will change its name to Ovivo will use the proceeds from the sale to expand its core water treatment operations through acquisitions.
The new chief executive Marc Barbeau has said it aims to spend between $50 million and $100 million next year.
Ovivo hopes to more than double its revenues in five years to about $1 billion from the current level of $400 million to $425 million.