Insight journal - Dealtalk

ArthroCare recieves m&a bid by rivals

Posted on 10 February 2014

Tags: , , ,

Smith & Nephew Plc’s M&A bid for ArthroCare, at the lowest premium for a medical-instruments company since the 1990s, is giving Stryker or Johnson & Johnson a shot at a rival offer.

ArthroCare, which makes products used in sports medicine for minimally invasive surgery, closed yesterday 99 cents above the $48.25-a-share bid from Smith & Nephew as some investors bet on higher proposals. Stryker, which acquired technology for robot-assisted surgery last year, and J&J, the world’s biggest maker of health-care products, are the most likely candidates to counter the $1.7 billion offer, said William Blair & Co.

The deal came together after an agreement with the U.S. Department of Justice last month boosted the stock and prompted takeover speculation. The gains mean that Smith & Nephew is offering only 5.6 percent more than ArthroCare’s average price in the prior 20 days, according to data compiled by Bloomberg. JMP Group Inc. estimated the company could get about $55 a share in a sale because of its high-margin assets in sports medicine and the chance to expandinternational sales.

“There are a lot of reasons why a bigger company would want this,” David Turkaly, a New York-based analyst at JMP, said in a phone interview. “Could somebody pay more than $1.7 billion for ArthroCare? I think the answer could be yes.”

Previous article : Smith & Nephew acquisition deal for ArthroCare

For further deal information visit Current Agreements (subscription required)



Report: Merger and Acquisition Terms and Agreements

Report: Hospital Care Partnering Terms and Agreements

Report: Musculoskeletal Partnering Terms and Agreements

Browse: Complete Current Partnering report catalog

View: Current Partnering’s Partnering Scorecard – view top life science partnering deals by value

View: Current Partnering’s Deal Metrics – the latest deal trend infographics for life science deal making

View: Current Partnering’s Big Pharma Deal Making Scorecard – latest trends in big pharma deal making activity

View: Current Partnering’s Big Biotech Deal Making Scorecard – latest trends in big biotech deal making activity

Signup: Current Partnering Dealmakers Update – weekly newsletter providing the latest life science industry deal news, deal making trends, partnering events – sign up now

Signup: Current Agreements Deals Review – monthly newsletter – reviewing the previous month’s life science deal making – partnering, M&A and financing – sign up now

Subscribe: Current Agreements life sciences partnering, M&A and financing deals database – find out more

Follow us on: LinkedIn Current Partnering | LinkedIn Business Development Network | @Currentpartner on Twitter

Print Friendly, PDF & Email

Leave a Reply