CR Bard Acquires Rochester Medical for $262 Million

Rochester Medical (Stewartville, MN) got some love from investors following news of its acquisition by CR Bard.

Following the announcement, shares of the company jumped by approximately 40%. In total, CR Bard agreed to acquire the company for $20 per share. Based on total outstanding shares, this represents a purchase price of $262 million.

CR Bard announced that it would merge Rochester with one of its subsidiaries, Starnorth Acquisition Corp. For its part, Rochester Medical would survive as a wholly-owned subsidiary.

The $20 per-share purchase price represents a significant premium over Rochester's (ROCM) average trading price. Based on the 90-day average closing price through September 2nd, the $20 price tag is a 37% premium.

"Our agreement with Bard represents an attractive valuation for Rochester Medical shareholders, and as an all cash offer, provides liquidity for shareholders," stated Anthony Conway, president and CEO of Rochester. "We believe the merger represents a great opportunity for the combined companies to create a broad product portfolio by offering a more comprehensive range of high-quality urological and continence care products to our customers."