Emergency Medical (NYSE:EMS) announced today it has has agreed to be taken over by private-equity firm Clayton Dubilier & Rice LLC for $3.2 billion.
William A. Sanger, EMSC Chairman and Chief Executive Officer, said, "EMSC’s agreement with CD&R and the transition to a privately-held company will greatly enhance our flexibility and growth opportunities in the future. We are pleased that with this transaction, we are able to maximize stockholder return while— with our new global equity partner— further positioning EMSC to play a significant role in delivering quality, cost-effective care for our patients in the era of healthcare reform.
“EMSC is an exceptionally high quality and successful company with an outstanding management team and world-class workforce led by Bill Sanger,” said Richard J. Schnall, a partner at CD&R. “The Company is poised for continued strong growth due to its leading market position, operational effectiveness and the value it brings to its customer base.”
This could backfire for for Clayton Dubilier, as most Americans oppose Obama's the imposed healthcare, and it's starting to be dismanteled, and ultimately, depending on the results of the next election, could be completely repealed. This deal looked good mostly on the assumption so-called healthcare reform will remain in place.
Shareholders of EMS will receive $64 a share in cash, a 9.4 percent drop from their closing price on Friday.
The deal should close in the second quarter.
EMS was trading at $62.91, down $7.75, or 10.97 percent, as of 11:33 AM EST.
No comments:
Post a Comment