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Strategies & Market Trends : Speculating in Takeover Targets
CTG 7.820-1.0%Oct 19 10:54 AM EDT

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To: richardred who wrote (2315)10/18/2010 9:36:17 AM
From: richardred  Read Replies (2) of 6086
 
Another medical device maker bites the dust.

St Jude to buy AGA Medical for over $1 bln


Mon Oct 18, 2010 7:28am EDT

* At $20.80, deal is 41 pct premium

* AGA Medical went public in October

NEW YORK Oct 18 (Reuters) - St Jude Medical Inc (STJ.N) will buy AGA Medical Holdings Inc (AGAM.O), 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)

reuters.com
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