Market Overview

Medical Actions To Be Acquired At 95% Premium

Share:
Related MDCI
Benzinga's M&A Chatter for Wednesday June 25, 2014
Medical Action Industries Leads Healthcare Sector; Aerie Pharmaceutical Meets Clinical Endpoints

Shares of Medical Actions Industries (NASDAQ: MDCI) may come close to doubling Wednesday morning.

Owens & Minor (NYSE: 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.

Related: MKM Says Pandora Could Be Worth $115/Share In 5 years

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.

Posted-In: Craig SmithNews M&A

 

Related Articles (MDCI + OMI)

View Comments and Join the Discussion!
Loading...
Loading...