By Lisa Kerner
Charlotte, N.C., Aug. 7 - Microtek Medical Holdings, Inc. agreed to be acquired by Ecolab Inc. for $6.30 per share in a deal valued at $274 million.
Both companies' boards of directors have approved the transaction, which is expected to close in the fourth quarter. A $9 million termination fee is included in the agreement.
"This transaction provides a great opportunity for expansion of our business, offers excellent value for our shareholders and represents a significant premium over the historical trading price of our shares," Microtek chairman, president and chief executive officer Dan R. Lee said in a company news release.
A.G. Edwards & Sons, Inc. provided a fairness opinion and advised Microtek.
Atlanta-based Microtek manufactures infectious and hazardous waste management products for the health care industry.
Ecolab, located in St. Paul, provides cleaning, sanitizing, food safety and infection prevention products and services.
Acquirer: | Ecolab Inc.
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Target: | Microtek Medical Holdings, Inc.
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Transaction total: | $274 million
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Price per share: | $6.30
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Termination fee: | $9 million
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Announcement date: | Aug. 7
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Expected closing: | Fourth quarter of 2007
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Stock price for target: | Nasdaq: MTMD: $4.70 on Aug. 6
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