Theragenics inches toward $68M buyout

Theragenics ($TGX) didn't hear any particularly sweet offers during its "go-shop" period, and now it's up to shareholders whether to approve a $68.3 million bid for the struggling devicemaker, the latest step in a protracted sale process.

Last month, the company agreed to a $2.20-per-share buyout offer from private equity outfit Juniper, and the deal gave Theragenics a month to listen to other suitors for a better offer. VRA Partners, the company's financial adviser, reached out to 42 parties about buying up the maker of surgical devices, but, with no proposals on the table, Theragenics is going ahead with the $68.3 million Juniper offer.

The company has scheduled a shareholder vote on the deal for Oct. 17, and, assuming investors give the green light, Theragenics expects to complete the buyout during the fourth quarter.

If the acquisition goes through, Theragenics CEO M. Christine Jacobs will retire from her post, and current CFO Frank Tarallo will step in to take her place, the company said.

Meanwhile, the Georgia company's sales continue to slide, dropping another 8% to $20.3 million last quarter as demand for its surgical products and brachytherapy seeds decline. Theragenics expects to rack up about $4.1 million in restructuring charges as it winds down production at a Texas plant and ships much of its vascular access manufacturing to Latin America.

Juniper already owns about 7% of Theragenics' outstanding shares, and the company has put together the financing it needs to get the deal done.

- read Theragenics' announcement

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