Covidien Plc, the medical-device company spun off from Tyco International Ltd., agreed to buy ev3 Inc. for $2.6 billion to add treatments for heart disease.
Covidien will pay $22.50 a share in cash for Plymouth, Minnesota-based ev3, the companies said in a statement today. Dublin-based Covidien is paying 19 percent more than the closing price May 28 for ev3’s stock.
The transaction is expected to be completed by July 31, the companies said. Ev3’s directors and officers plan to tender their shares, according to the statement. Warburg Pincus Equity Partners LP, which owns 24 percent of ev3, supports the deal, the companies said.
The purchase will reduce Covidien’s earnings per share this year and next, according to the statement. Ev3 makes catheters, stents and angioplasty balloons used in treating heart disease.
Ev3’s shares have risen 42 percent this year, closing May 28 at $18.92.
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