Stryker puts up $52m for TSO3

Stryker (NYSE:SYK) today agreed to pay $52 million to acquire TSO₃ (TSX:TOS) and its Sterizone VP4 sterilizer.

The C43¢-per-share offer works out to about C$68.4 million ($51.7 million), representing an 18% premium on the 30-day volume-weighted average share price, Quebec City-based TSO₃ said.

“TSO₃‘s board of directors and management believe that this transaction provides the best liquidity opportunity for shareholders. Reaching this conclusion is an important step for TSO₃ as well as current and future customers, as it will provide the expertise and the financial resources to best help TSO₃ achieve its full potential. We look forward towards its successful completion,” president & CEO Ric Rumble said in prepared remarks.

Although the deal bars TSO₃ from seeking other offers, it can field any unsolicited offers that top Stryker’s bid, provided that the Kalamazoo, Mich.-based orthopedics giant is given the right to match or exceed the second offer, TSO₃ said. The agreement, slated to close during the fourth quarter, also includes a nearly C$3.1 million ($2.3 million) kill fee payable to Stryker should the deal founder.

In a separate release, TSO₃ posted 12.5% wider second-quarter losses of -$4.2 million, or -4.5¢ per share, on sales growth of 100.5% to $748,000 for the three months ended June 30, compared with Q2 2018.

TOS shares were up 10.4% to C42.5¢ today in mid-morning activity in Toronto.

($1 = C$1.32284)

Building Better Companies at DeviceTalks Minnesota DeviceTalks Minnesota's leadership track is designed to provide attendees with insights on topics such as: Navigating the path to market Reimbursement Winning regulatory approval Corporate culture Entering global markets Leadership Join industry leaders and medical device professionals at the most awaited medtech conference of the year, DeviceTalks Minnesota. Use code SAVE15 to save 15%! REGISTER NOW