Medical Actions To Be Acquired At 95% Premium
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.
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.
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