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.
|
| 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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