Dallas, Texas 09/06/2013 (Financialstrend) – On Tuesday two leading health care companies, Rochester Medical Corporation (NASDAQ:ROCM) and C.R. Bard, Inc. (NYSE:BCR), entered into a merger agreement. BCR agreed to be pay a price of $20 per share of ROCM. The total worth that BCR is to pay ROCM for taking up the company is approximately $262 million. The Board of Directors of ROCM collectively accepted the agreement and is going to the shareholders of the company to give vote for the transaction.
According to the merger agreement terms, ROCM shareholders are going to get in cash $20 per share held by them at the time of conclusion of the merger. This is going to give the shareholders a 37% premium gain over ROCM’s 90 trading days’ closing average as of September 3, 2013. The acquisition of ROCM by BCR is subject to the fulfillment of certain terms mentioned in the definitive merger agreement. The conditions for the successful merger of the two companies are approval of the regulatory bodies and approval of the shareholders. It is most likely that the acquisition would be complete by 4Q13.
Anthony J Conway, CEO and President of ROCM, mentioned that the agreement with BCR is an attractive offer for the ROCM shareholders. He further added that due to the all-cash offer from BCR, ROCM shareholder would also be able to enjoy complete liquidity to their investment. According to CEO, the merger would allow the amalgamated companies to prepare a better product portfolio by combining high-quality products of both the companies.
While ROCM was entering into the merger agreement, Piper Jaffray & Co. will act as their financial advisor. They have so far helped ROCM Board of Directors with fair opinions. On the other hand, Dorsey and Whitney LLP will act as an advocate for ROCM.
The shares of BCR rose by 0.04% to close at $116.78 while the shares of fell 0.10% to close at $19.89.