Supplier News Breaks
Home Diagnostics to be acquired by Nipro
February 3rd, 2010
FORT LAUDERDALE, Fla. – Home Diagnostics Inc. (HDI), a maker of diabetes testing products, has entered an agreement to be acquired by medical device manufacturer Nipro Corp. in a deal valued at about $215 million.
HDI said Wednesday that under the pact, Osaka, Japan-based Nipro will buy all outstanding shares of HDI common stock in a cash tender offer for $11.50 per share, an approximately 90% premium to the closing price of the shares on February 2.
According to the companies, the two-step acquisition will entail the cash tender offer followed by a second-step merger in which untendered HDI shares will be acquired at the same $11.50 price per share. The deal has been approved by Nipro and the board of directors of Home Diagnostics.
HDI and Nipro said they expect the tender offer to begin on or about February 10 and remain open for 20 business days, subject to extension under certain circumstances. The offer is expected to be wrapped up before the end of the first quarter.
"First and foremost, we are pleased to announce this transaction which provides a substantial current cash premium to our stockholders," Joseph Capper, HDI president and chief executive officer, said in a statement. "We believe this transaction is also beneficial to our customers and suppliers because it greatly enhances Home Diagnostics' capabilities by expanding our product offering and aligning our business with a global health care company."
Fort Lauderdale-based HDI offers a portfolio of blood glucose monitoring systems, including such brands as TRUE2go, TRUEresult, TRUEtrack, TRUEbalance, Sidekick, TRUEread and Prestige IQ. The products are available in more than 45,000 pharmacies throughout the United States. In addition, the company is the exclusive co-brand supplier of blood glucose monitoring systems for leading pharmacies including CVS, Rite Aid and Walgreens, as well as distributors such as AmerisourceBergen, Cardinal Health, McKesson, Invacare and Liberty Medical.
Nipro and its subsidiaries are engaged in the development, manufacture and sale of medical devices, pharmaceutical products, and medical and glass products, including cell culturing-related products and diabetes-related products.
More Supplier News Breaks >>