Medical Actions To Be Acquired At 95% Premium

Shares of Medical Actions Industries MDCI may come close to doubling Wednesday morning.

Owens & Minor OMI announced it would buy buy Medical Actions for $13.80 per share, 95 percent over the closing price.

A $13.80 share price put the enterprise value at $208 million for the medical device company, which recorded $287.8 million in sales last year.

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Owens & Minor CEO Craig Smith commented, “With attractive margins and a strong competitive position, we expect this transaction to create value for shareholders and establish a scalable platform for future growth.”

The combined company expects cost saving of $10 million to $12 million by the end of 2016.

Shares of Medical Action are up 94.9 percent at $13.77 in the pre-market session. Owens & Minor is unchanged.