Don joy....SOLD to the highest bidder.
Joe Sansone
Description
Collection
Title:
Don joy....SOLD to the highest bidder.
Creator:
Joe Sansone
Date:
7/16/2007
Text:
The following comes form the AP newswire:
NEW YORK - Orthopedic sports medicine DJO Inc. said Monday it agreed to
be acquired by medical device maker ReAble Therapeutics Inc. for $1.18
billion in cash.
Austin, Texas-based ReAble offered to pay $50.25 per share in cash for
Vista, Calif.-based DJO, representing a 19.4 percent premium to the
stock's closing price Friday. Based on DJO's 23.56 million common shares
outstanding at May 8, the deal is worth $1.18 billion.
Including assumed debt, the transaction is valued at about $1.6 billion.
An affiliate of Blackstone Group is the controlling shareholder of
ReAble and has committed to provide the equity financing needed by
ReAble to complete the transaction.
DJO's board as well as a committee of independent directors have
unanimously approved the transaction and recommend that DJO stockholders
approve the merger.
DJO and ReAble have established strong positions in the orthopedic and
rehabilitation markets, said Ken Davidson, CEO of ReAble. The
strategic fit, both in the U.S. and overseas, is absolutely compelling.
The deal is expected to close in the fourth quarter, subject to
regulatory and DJO shareholder approvals. There is no financing
condition to close the transaction.
DJO expects to hold a special meeting for shareholders to consider and
vote on the proposed takeover. The company said that terms of the merger
agreement allow DJO to solicit superior proposals from third parties
during the next 50 calendar days.
However, if a rival bid is accepted, DJO must pay a break-up fee to
ReAble of $18.7 million.
In fiscal 2006, DJO reported profit of $12.6 million on revenue of
$413.1 million. The company, which has about 3,000 employees, makes
rigid knee braces, osteoarthritic braces and pain management products,
among other items.
DJO sells its products through agents, distributors, and direct sales
force to orthopedic and spine surgeons, podiatrists, orthopedic and
prosthetic centers, as well as hospitals, physical therapists and other
healthcare professionals. It markets its products under the DonJoy,
ProCare and Aircast brands.
Wachovia Securities is acting as financial adviser and Latham & Watkins
LLP is acting as legal counsel to the DJO board in this transaction.
Credit Suisse is acting as financial adviser and Simpson Thatcher &
Bartlett LLP is acting as legal adviser to ReAble and Blackstone in this
transaction. Financing commitments have been provided by Credit Suisse
and Bank of America.
Shares of DJO closed Friday at $42.10, having ranged between $31.07 and
$45.50 over the past year.
__________________
Questions or comments about this story should be directed to editor
Jennifer Malloy on the Financial News desk of The Associated Press at
212-621-7190.
Joe Sansone
C.E.O.
TMC Orthopedic
(713) 669-1800
www.tmcortho.com
NEW YORK - Orthopedic sports medicine DJO Inc. said Monday it agreed to
be acquired by medical device maker ReAble Therapeutics Inc. for $1.18
billion in cash.
Austin, Texas-based ReAble offered to pay $50.25 per share in cash for
Vista, Calif.-based DJO, representing a 19.4 percent premium to the
stock's closing price Friday. Based on DJO's 23.56 million common shares
outstanding at May 8, the deal is worth $1.18 billion.
Including assumed debt, the transaction is valued at about $1.6 billion.
An affiliate of Blackstone Group is the controlling shareholder of
ReAble and has committed to provide the equity financing needed by
ReAble to complete the transaction.
DJO's board as well as a committee of independent directors have
unanimously approved the transaction and recommend that DJO stockholders
approve the merger.
DJO and ReAble have established strong positions in the orthopedic and
rehabilitation markets, said Ken Davidson, CEO of ReAble. The
strategic fit, both in the U.S. and overseas, is absolutely compelling.
The deal is expected to close in the fourth quarter, subject to
regulatory and DJO shareholder approvals. There is no financing
condition to close the transaction.
DJO expects to hold a special meeting for shareholders to consider and
vote on the proposed takeover. The company said that terms of the merger
agreement allow DJO to solicit superior proposals from third parties
during the next 50 calendar days.
However, if a rival bid is accepted, DJO must pay a break-up fee to
ReAble of $18.7 million.
In fiscal 2006, DJO reported profit of $12.6 million on revenue of
$413.1 million. The company, which has about 3,000 employees, makes
rigid knee braces, osteoarthritic braces and pain management products,
among other items.
DJO sells its products through agents, distributors, and direct sales
force to orthopedic and spine surgeons, podiatrists, orthopedic and
prosthetic centers, as well as hospitals, physical therapists and other
healthcare professionals. It markets its products under the DonJoy,
ProCare and Aircast brands.
Wachovia Securities is acting as financial adviser and Latham & Watkins
LLP is acting as legal counsel to the DJO board in this transaction.
Credit Suisse is acting as financial adviser and Simpson Thatcher &
Bartlett LLP is acting as legal adviser to ReAble and Blackstone in this
transaction. Financing commitments have been provided by Credit Suisse
and Bank of America.
Shares of DJO closed Friday at $42.10, having ranged between $31.07 and
$45.50 over the past year.
__________________
Questions or comments about this story should be directed to editor
Jennifer Malloy on the Financial News desk of The Associated Press at
212-621-7190.
Joe Sansone
C.E.O.
TMC Orthopedic
(713) 669-1800
www.tmcortho.com
Citation
Joe Sansone, “Don joy....SOLD to the highest bidder.,” Digital Resource Foundation for Orthotics and Prosthetics, accessed November 24, 2024, https://library.drfop.org/items/show/228397.
