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Pacific Insight Reaches Arrangement Agreement with Methode Electronics

Published: 08/01/2017

Team: Gordon R. Chambers, John T.C. Christian, Jennifer L. Poirier, Kristin Taylor, Chris Hersh

Pacific Insight Electronics Corp. (TSX:PIH) has entered into a definitive agreement with Methode Electronics Inc. pursuant to which Methode has agreed to acquire, by way of a plan of arrangement (the "Arrangement"), all of the outstanding shares of Pacific Insight in an all-cash transaction for total consideration of approximately CAD$144 million.

Under the Arrangement, each Pacific Insight common share will be acquired for a cash purchase price of CAD$18.50. This represents a premium of 76% based on the closing price Pacific Insight on the TSX on July 31, 2017 and a 79% premium based on Pacific Insight' s 20-day TSX volume weighted average price ending on July 31, 2017. All outstanding options and warrants will also be acquired.

A special meeting of the holders of Pacific Insight securities is expected to take place by no later than end of September to approve the Arrangement. Completion of the transaction will also be subject to receipt of all necessary regulatory and court approvals, and the satisfaction of certain other closing conditions customary for a transaction of this nature. The Arrangement is expected to be completed in the last quarter of calendar 2017.

Cassels Brock is acting for Pacific Insight with a team that includes Gordon Chambers, John Christian and Jennifer Poirier (Securities and M&A), Kristin Taylor (Employment) and Chris Hersh (Competition).