Dallas, Texas 09/06/2013 (Financialstrend) – Bard announced that it has now entered into a definitive-agreement to buy out Rochester Medical Corporation (NASDAQ:ROCM). The latter company develops and supplies urine drainage and urinary incontinence products. The buy-out offer is at $20 per share or almost $262M in the aggregate that will be paid at the closure of the deal.
This deal is expected to be sealed towards the end of 2013 and has been laid out as a merger. Both the companies’ boards of directors have approved the merger which will be subject to the customary closing-conditions. Apart from regulatory approval, ROCM shareholders will also have to approve the deal.
A good strategy
This is a very strategic move for Bard as it will boost its stature in the $930M global urology-homecare market. ROCM’s technology and products, in addition to their customer-access programs and expansive distribution assets offer a very sturdy platform for a merged portfolio to compete in the global homecare space.
It is estimated that by 2018, 1.1B people across the world will suffer from some or the other form of bladder outlet or lower urinary tract obstruction. Incontinence and urinary retention are very common chronic problems with many patients and out-of-hospital product solutions are required to treat them.
The market leader
Male urinary incontinence which could be the result of radical prostatectomy, aging or BPH is a chronic condition that is generally managed with male external-catheters or incontinence pads. ROCM is involved in marketing a vast line of various innovative products for patients who suffer from this condition. It currently has a dominant position in the $130m global MEC market.
Rochester Medical Corporation (NASDAQ:ROCM) dipped 0.10% in Thursday’s trading session. The shares had an opening price of $ 19.89 which rose to an intraday high of $19.92 and dipped to close at $19.89. More than 1.36 million shares exchanged hands in Thursday’s trading while the average volume of shares traded over a 30 day period was 0.140 million. The company has a market cap of $245.83 million.