From CCN Matthews

BOUCHERVILLE, Quebec -- On Feb. 1, 2002, Uni-Select and Acklands-Grainger Inc. pooled their automotive sales and distribution assets in a joint venture operated by Uni-Select and known as USI-AGI Prairies Inc.

Uni-Select has decided to exercise its call option under the terms of the shareholders agreement between the parties, and will purchase all of the shares held by Acklands-Grainger in USI-AGI Prairies. The purchase terms and conditions are set out in the shareholders agreement. Uni-Select intends to close this transaction and become sole shareholder of USI-AGI Prairies on May 31.

"This joint venture has been successful and beneficial to both Acklands-Grainger and Uni-Select," said Jacques Landreville, president and chief executive officer of Uni-Select. "However, as time passed, it became obvious that each partner is intent on focusing its resources on its core operations. As the operations of USI-AGI Prairies are clearly the market segment of Uni-Select, it was natural for Uni-Select to want to purchase those assets."

"Uni-Select and Acklands-Grainger have built a solid business relationship as joint venture partners, and plan to continue that relationship through a long-term supply agreement," said Douglas Harrison, president of Acklands-Grainger.

Uni-Select estimates that this business development will add $3.8 million to its pre tax profit on an annualized basis.

Copyright 2006 CCNMatthews. All Rights Reserved.

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