St Jude Medical is set to buy AGA Medical Holdings Inc, which is backed by private equity firm Welsh, Carson, Anderson and Stowe, in a deal worth more than $1 billion in stock and cash. At $20.80 a share, the deal values AGA Medical at a 41 percent premium on Friday’s closing price. AGA went public in October at $14.50 a share. St Jude said it expected to close the deal by the end of the year.
(Reuters) – St Jude Medical Inc will buy AGA Medical Holdings Inc, a maker of devices to treat heart defects and vascular problems, for more than $1 billion in cash and stock, the companies said on Monday.
At $20.80 per share, the deal values AGA Medical shares at a 41 percent premium to Friday’s closing price. The companies valued the deal at about $1.3 billion, including the assumption of about $225 million in debt.
AGA Medical went public in October at $14.50 per share. Its major shareholders include those affiliated with private equity firm Welsh, Carson, Anderson & Stowe, and AGA Medical’s co-founder Franck Gougeon.
The deal involves an even split between cash and stock. The exchange ratio for the stock component will be determined by the average closing price of St. Jude stock over 10 trading days, ending two days before the close of the exchange offer.
St Jude said it expects the transaction to close by year’s end and it does not affect its earnings outlook for 2010. (Reporting by Lewis Krauskopf, editing by Maureen Bavdek)Get your FREE trial or subscribe now to Buyouts to find new deal opportunities, super-charge your fundraising efforts and track top managers.