C.R. Bard's ($BCR) $262 million cash bid for Rochester Medical ($ROCM) is hitting the home stretch. The soon-to-be acquired company will hold a special shareholder meeting Nov. 13 to approve the deal.
Rochester Medical shareholders aren't likely to put up much of a fuss. Bard is offering about $20 per share, 37% higher than the company's average closing price during 90 trading days ending Sept. 3. Expectations are that the sale will close soon after the shareholder vote.
Here's a phrase that explains what this deal is all about: urology home care devices. The market is worth $930 million globally, and Bard wants a greater presence in the space. Minnesota-based Rochester Medical will help Bard accomplish this, with its focus, in part, on making and selling disposable home-use medical catheters and devices for urological and continence care. Plus, Rochester Medical has a distribution system and customer access programs ripe for helping Bard to bring more products to its own clients and beyond.
This isn't a high-profile market space by any means. But it is reliable and growing. Combine an aging population with a need for more home care products and services, and Bard's pending investment makes a lot of sense. Healthcare policies that push to control cost through more home care options will also spur more market growth in this space.
Meanwhile, Bard, which is based in Murray Hill, NJ, is buying Minnesota-based Medafor in a deal worth at least $200 million, which will help expand its presence in the blood-clotting business.
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