Rochester Medical skyrockets on $262M Bard acquisition news

September 4, 2013 by Arezu Sarvestani

Shares of Rochester Medical spike more than 40% on news that healthcare giant C.R. Bard plans to acquire the company for $20 per share, amounting to about $262 million total.

Rochester Medical skyrockets on $262M Bard acquisition news

Both C.R. Bard (NYSE:BCR) and Rochester Medical (NSDQ:ROCM) got some stock market love today after the companies signed a definitive merger agreement, but Rochester was the clear Wall Street darling with a more than 40% bump in shares by early afternoon trading.

Stewartville, Minn.-based Rochester announced this morning that its board of directors unanimously approved a $20-per-share cash acquisition by Bard, a proposal worth about $262 million in total. ROCM shares jumped from last night's close at $13.81 to $19.95 as of about 12:30 p.m. today, a $44.5% increase. Bard got a little love of its own, with shares up 1.1% to $115.95 by midday.

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The $20-per-share deal represents a 37% premium over ROCM's average closing price during the 3 months ended Sept. 2, 2013, according to a company report. Rochester plans to encourage its shareholders to sell. If all goes as planned, the transaction should close before the end of the year.