Rochester Medical vote is Nov. 13 [Post-Bulletin, Rochester, Minn.]
(Post-Bulletin (Rochester, MN) Via Acquire Media NewsEdge) Oct. 15--STEWARTVILLE -- Rochester Medical Corp. shareholders will meet on Nov. 13 to vote on a proposed acquisition by C.R. Bard Inc., the company has announced.
The board of directors of the Stewartville-based company unanimously approved the merger agreement and recommended shareholders vote for the deal announced Sept. 4, which calls for C.R. Bard to pay $262 million, or $20 a share.
Directors recommend that shareholders submit their proxy vote, because not voting will have the same effect as a vote against the merger, according to the proxy statement submitted to the Securities & Exchange Commission this week.
If shareholders don't attend the meeting, they can vote over a toll-free telephone number, electronically over the internet, or by completing, signing and mailing a proxy card.
Rochester Medical shareholders of record at the close of business on Sept. 30 are entitled to vote.
The meeting is at 2 p.m.at the offices of the Minneapolis law firm of Dorsey & Whitney LLP. The proxy statement for the meeting was mailed to shareholders on Monday.
The proxy statement notes that the $20 price represents a 53 percent premium over $13.09, which was the closing price on Aug. 30, the last full trading day before the merger announcement.
The merger is expected to be completed in the fourth quarter, although it must meet regulatory requirements.
Financial projections provided by Rochester Medical project that the company's sales will steadily increase from $68.7 million in 2013 to $162.2 million in 2018, according to the proxy statement.
Rochester Medical has about 400 employees worldwide, and about 250 of them work in Stewartville.
Rochester Medical makes catheters and other products that people with urinary incontinence can use at home. Bard said the deal will expand its home-care urology products business.
Bard, based in Murray Hill, N.J., had $2.96 billion in revenue in 2012, including $757.8 million from its urology business. Rochester Medical had $61.1 million in revenue in its latest fiscal year.
The acquisition of Rochester Medical is the third Bard purchase in three months, according to RubberNews.com. Bard reached an agreement in August to acquire Medafor Inc. for $200 million at closing, along with future contingent payments up to an additional $80 million. The transaction is expected to close this year.
Bard's buyout of Loma Vista Medical Inc. closed at the end of August, a company spokesman said.
"We're entering new spaces with faster revenue growth," Bard CEO Tim Ring was quoted as saying. "The acquisitions provide us access to markets with long-term opportunity."
C.R. Bard shares this morning were trading at $119.84, up from $114.66 before the deal was announced Sept. 4. Rochester Medical was trading at $19.96, up from $13.09 before the deal was announced.
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