San Clemente, Calif.-based ICU Medical hired JPMorgan Chase & Co. to help it field offers, "people familiar with the matter" told Bloomberg.
ICUI shares hit their all-time peak yesterday on the rumors, spiking to $71.29 apiece before subsiding to a $68.83-per-share close, for a 12.7% gain on the day. Shares were trading at $66.28 as of about 1:45 p.m. today, down 3.7%.
CJS Securities analyst Lawrence Solow speculated that the buyer is likely to end up being a private equity shop, as finding a strategic fit with another medical device maker would be hard, the new service reported.
"To try and fit it strategically, it’s hard to say who it would be," Solow said. "There’s nobody that lines up with their markets."
ICU Medical is sitting on fat coffers – some $233.6 million in cash & equivalents as of March 31, according to a regulatory filing. That nest egg could make a $1 billion valuation feasible, Solow said.
Representatives from both ICU Medical and J.P. Morgan declined to comment for Bloomberg.