UPDATE 1-CoolBrands to buy private hygiene product co

* To exchange 57.8 mln CoolBrands shrs for all Swisher shrs

* Deal valued at C$102.9 mln on CoolBrands’ Tuesday close

* CoolBrands to own 52 pct of new co, Swisher to hold rest

* Wayne Huizenga to be Chairman of new co

* Shares up 24 pct to 4-yr high

Aug 18 (BestGrowthStock) – Canada’s CoolBrands International Inc
(COB.TO: ) agreed to acquire privately held hygiene products and
services company Swisher International Inc in an all-stock
deal, valued at C$102.9 million based on CoolBrand’s Tuesday
close of C$1.78.

Shares of the Markham, Ontario-based company rose as much
as 24 percent on Wednesday to a four-year high of C$2.20.

CoolBrands, formerly known for frozen desserts such as
Eskimo Pie, said it will exchange about 57.8 million of its
shares for all outstanding Swisher shares.

The company said about 55.8 million of these shares will be
subject to a lock-up agreement.

CoolBrands said the deal will see the return of H Wayne
Huizenga and Steve Berrard — names behind companies such as
movie rental chain Blockbuster Entertainment and auto dealer
AutoNation (AN.N: ) — to the public capital markets.

CoolBrands will own 52 percent stake in the combined
company, while Swisher shareholders will own the rest.

The deal is expected to close by November 30.

Swisher provides cleanliness and sanitation products and
services to the hospitality, food service and retail
industries.

CoolBrands, which earlier sold a range of ice creams,
frozen snacks and fresh yogurt products, disposed most of its
business by 2007.

Earlier this month, the company had said it was eyeing
deals that could include possible acquisitions and mergers.
[ID:nN03169196]

Shares of the company have risen over 53 percent on the
Toronto Stock Exchange in the last one month following talks of
possible deals.

CoolBrands shares were up 8 Canadian cents at C$1.86 in
morning trade and had the sixth highest trading volumes on the
Toronto Stock Exchange.
(Reporting by Ashutosh Joshi in Bangalore; Editing by Roshni
Menon)

UPDATE 1-CoolBrands to buy private hygiene product co