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Allied Healthcare International Inc. (AHCI:NSQ), the US-quoted provider of temporary staffing services to the health care and social care industries in the UK and Ireland, has announced that it has entered into a definitive agreement to be acquired by Saga Group Limited for $3.90 per share, which represents a premium of 59% to Allied's closing price on 28 July 2011 of $2.45. The aggregate purchase price for all outstanding shares of Allied common stock, including outstanding options, will be approximately $175 million.
The terms of the agreement were unanimously approved by Allied's Board of Directors. The transaction is not subject to a financing condition. Completion of the transaction is subject to the approval of Allied's shareholders and certain other terms and conditions customary for transactions of this type, including regulatory approvals. Completion of the transaction is expected to occur in the fourth calendar quarter of 2011.
Sandy Young, Chief Executive Officer of Allied, commented "we are pleased to have entered into a transaction that will offer Allied shareholders an attractive valuation. After a robust examination of the strategic alternatives available to the company, our board unanimously concluded that this transaction is in the best interests of our company and shareholders."
Dr. Jeffrey S. Peris, Chairman of Allied, stated "Saga's acquisition of Allied provides the opportunity to realise value for our shareholders by leveraging Allied's quality achievements, operational excellence, and our talented personnel while continuing to meet our customer's healthcare needs."
John Ivers, Chief Executive Officer of Saga Healthcare, said "our strategic intent has been to grow our healthcare division organically and through carefully selected acquisitions. I am therefore delighted that Allied is joining the Saga Group. Saga will be the UK's pre-eminent provider of domiciliary care. We are creating a nationally recognised and trusted provider of quality care in the home. I look forward to welcoming the staff and customers of Allied to the Saga family. Working together we have an exciting future."
Saga Group is a provider of products and services specifically designed for people aged 50 and over. Saga provides insurance, savings, financial advice, care services, holidays, and publishes Saga Magazine. Saga is owned by Acromas, which in turn is co-owned by private equity firms Charterhouse, CVC and Permira.
After the announcement of the deal on Friday Allied Healthcare's shares, which are listed in New York, were up by +56.9% to US$3.82