St. Jude Medical (NYSE:STJ) does not often do flashy deals, but the company has a solid track record of buying just-under-the-radar companies with strong positions in lucrative niche markets. St. Jude rolled out that formula again on Monday, announcing a cash and stock deal for AGA Medical (Nasdaq:AGAM) - a small-cap med-tech company with a great franchise in niche applications of cardiac structural repair and vascular abnormalities.
The Deal
To bring AGA Medical into the fold, St. Jude is paying about $1.1 billion in a mix of cash and stock, and assuming over $200 million in AGA Medical debt. All told, St. Jude is facing a $1.3 billion price tag, while AGA Medical shareholders get about $20.80 per share divided equally between cash and stock. In order to neutralize the impact of these shares, St. Jude's board also authorized a share repurchase program of up to $600 million. (For more, see The Wacky World Of Mergers And Acquisitions.)
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