Atrium acquires Douglas Laboratories
The transaction is immediately accretive, enabling Atrium to increase its adjusted earnings before interest, income taxes, depreciation and amortization (EBITDA) from approximately $31 million to about $48 million on a pro forma basis and therefore also increasing earnings per share of the Company by more than 50%, before synergies. Following the transaction, Atrium's pro forma revenues will exceed $315 million.
Under the agreement, Atrium will acquire Douglas for the total amount of $107 million ($US92 million), representing approximately 6.4 times the adjusted EBITDA generated by Douglas. Approximately $97 million will be paid in cash while the remainder, approximately $10 million, will be paid in Atrium subordinate voting shares issued to certain Douglas management shareholders at a price of $10.95 per share. The cash portion will come from cash on hand and the newly renegotiated credit facility that can be increased to $200 million, under certain conditions.
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