Two deals total $23.3 billion
The proliferation of big healthcare deals continued last week with news of a pending $3.2 billion private-equity buyout of Emergency Medical Services Corp. and Sanofi-Aventis’ plans to pay $20.1 billion in cash for Genzyme Corp.
Emergency Medical signed a definitive agreement to sell the publicly traded emergency transport and physician services company to private-equity firm Clayton, Dubilier & Rice for a market-discounted price. The transaction value also includes net debt and estimated transaction costs of approximately $ 300 million, according to a news release from Emergency Medical.
The deal, expected to close in the second quarter, was struck at $64 per share, which is 9% less than the $70.66 value of the stock at the close of Feb. 11, the Friday before the announcement was made early Feb. 14.
Emergency Medical Chairman and CEO William Sanger, however, said in an interview that the company’s share price had risen more than 30% since the company announced Dec. 14 that it was considering strategic alternatives to enhance shareholder value, with the stock price closing at $53.86 before that announcement.
Emergency Medical has two primary businesses—American Medical Response, a healthcare transportation company, including ground and air transport, and EmCare, which offers outsourced physician services for areas such as emergency departments, inpatient radiology and anesthesiology.
According to Emergency Medical’s most recent annual report, Toronto-based investment firm Onex Corp. or its affiliates controlled 82% of the company’s voting power.
Meanwhile, the deal between SanofiAventis and Cambridge, Mass.-based Genzyme comes after the French drugmaker launched a hostile takeover bid.
After almost nine months of back-andforth, Sanofi-Aventis finally decided Genzyme’s portfolio of rare disease treatments was worth an extra $5 a share over its original $69 per share offer, according to the Associated Press.
The deal, which the boards of both companies unanimously approved, is expected to close early in the second quarter.