As its net profits careen into the red, Theragenics ($TGX) is considering a buyout offer worth up to $71.4 million from private equity outfit Juniper.
Under the terms of the offer, Juniper would pay between $2.25 and $2.30 per share of Theragenics, or $69.9 million to $71.4 million in total, Reuters reports. Theragenics has signed an agreement to negotiate solely with Juniper until June 11, at which point, if the two come to terms on a price, Theragenics would get a 30-day "go shop" period to field other offers before finalizing a deal.
The offer on the table is the result of some weekend negotiation on Theragenics' part, as Juniper's initial offer was a range of $2.05 to $2.10 per share, topping out at about $65.2 million.
Theragenics said disclosing the offer hardly constitutes a final decision on selling itself, and the company is still mulling other strategic alternatives. The devicemaker said it has no plans to issue further comment until the sale is done or declined.
Juniper's interest comes as Theragenics is struggling to balance a decline in demand for its surgical products and an across-the-top 2.3% bite into revenue thanks to the medical device tax. Last quarter, the company posted a net loss of $34,000 as sales dipped 8% to 19.9 million.
Now, Theragenics is paring down its business in hopes of turning its fortunes around, looking to save $3.3 million to $3.6 million per year by shipping much of its vascular access manufacturing to Latin America and shutting down a plant in Garland, TX.
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