Beckman Coulter Announces Additional Details on Financing for Its Proposed Acquisition of Biosite Incorporated
Beckman Coulter, Inc. announced additional details regarding its financing strategy for the proposed acquisition of Biosite Incorporated. On March 25, 2007, Beckman Coulter announced it had entered into a definitive merger agreement with Biosite under which Beckman Coulter will acquire all of Biosite's outstanding common stock in a cash tender offer of $85.00 per share, or approximately $1.55 billion on a fully diluted share basis. Financing for the transaction has been fully committed by Morgan Stanley and Citigroup.
Upon the change of control, all of Biosite's stock options will vest, and are expected to be converted into Beckman Coulter stock options with an equivalent value. This non-cash portion of the transaction represents about $200 million of the purchase price.
Charlie Slacik, Beckman Coulter's Senior Vice President and Chief Financial Officer, stated, "We plan to put our permanent financing for the Biosite acquisition in place soon after the closing of the tender offer. We expect that about half of the permanent financing will consist of convertible notes with the balance of the purchase price composed of straight debt. In order to counter the dilutive effect of the converted stock options, we will consider re-purchasing up to $200 million of Beckman Coulter common stock in conjunction with the issuance of convertible notes. Our permanent financing plans, including any re-purchase of Beckman Coulter stock, are subject to the approval of Beckman Coulter's Board of Directors."
Other news from the department business & finance
Get the life science industry in your inbox
From now on, don't miss a thing: Our newsletter for biotechnology, pharma and life sciences brings you up to date every Tuesday and Thursday. The latest industry news, product highlights and innovations - compact and easy to understand in your inbox. Researched by us so you don't have to.
