Haemonetics to Buy Global Med Tech
GLOB has agreed to be bought by Haemonetics Corp. in a deal worth $60 million. Just like Global Med, Haemonetics makes blood-collection devices and related technologies to customers around the world.
GLOB's stockholders are being offered $1.22 per share of a common, a 62% premium above a recent closing price. Holders of Global's preferred stock are being offered $1.694 per share.
Editor's Note
Haemonetics(HAE) is a New York Stock Exchange firm that in the 12/31/09 quarter had sales of $165 million with net income of $18 million. We are sure that HAE is licking its chops, eager to get GLOB at such a low price.
Three years ago, Global Med had yearly sales of about $16 million. Now, they are over $37 million annually. Profits back then were $1.5 million a year. Now, they are about the same for this Bulletin Board Company. And so, it's not surprising that the stock price hasn't gone anywhere during those years.
The acquirer says that it's paying a 62% premium. But that figure is easily accomplished because it's buying a company with a very low stock price.
Since it is in the same business, we're sure that HAE thinks it can squeeze more profits from GLOB's assets than GLOB's management is doing. The acquirer has demonstrated with its own business that it knows how to bolster the bottom line.
The deal has attracted the interest of four law firms. Of them, Finkelstein Thompson LLP, Washington, D.C., 877/337-1050, outlined the following facts that are the center of its investigation:
(1) Unfairness of the offering stock price to Global Med shareholders.
(2) The process by which the GLOB board considered and approved the transaction.
(3) The $2.6 million termination fee.
(4) The Board of Directors agreed not to discuss or seek any superior merger agreements.