Theragenics (NYSE:TGX) has a month to solicit bids before settling on a merger agreement with private equity firm Juniper Investment Co. The companies this week announced a definitive merger agreement, reached after months of hashing out the details under an exclusivity contract.
The $2.20-per-share offer undercuts previous offer estimates, which were slated to be between $2.25-$2.30. That’s still an increase from the original proposal, which was between $2.05-$2.10 per share, and is still a leap from Theragenics’ pre-offer trading value of about $1.50. In total, the transaction is worth about $68.3 million.
"This transaction presents a significant premium over the Company’s trading prices prior to the announcement of discussions with Juniper, and, after careful analysis, the Board has determined that the transaction is in the best interests of our stockholders," Theragenics president, CEO & chairman M. Christine Jacobs said in prepared remarks. "Juniper is an experienced investor and committed to maintaining the customers-first approach that is so fundamental to the Company. Theragenics will be well positioned to continue to serve the needs of its customers without the significant burden of public company costs."
Jacobs will retire at the close of the deal, which is slated for sometime during the 4th quarter. At that time current CFO Frank Tarallo will take over the corner office.