TPG Capital has acquired all the outstanding shares of Exactech common stock for $42 per share.
Orthopedic implant maker Exactech struck a deal worth $625 million to become a privately-held company.
This morning, Exactech announced TPG Capital would acquire all the outstanding shares of Exactech common stock for $42 per share. Exactech founders Bill Petty and Betty Petty, as well as Chief Executive Officer David Petty, have agreed with TPG to vote all of their shares in favor of the merger and to exchange a significant portion of their shares for new shares in the parent entity immediately following the merger. Once the transaction is complete, Exactech will no longer be listed on the Nasdaq exchange. The transaction is expected to be completed by the end of the first quarter of 2018. The $42 per share price represented a premium of approximately 31 percent over Exactech’s closing stock price of $32 per share on Oct 20.
That premium has changed though. The announcement of Exactech going private encouraged many investors to get on board. Share prices are up more than 30 percent this morning, trading at $41.86 as of 10:14 a.m.
Exactech CEO David Petty said the agreement with TPG provides maximum value for the company’s shareholders, who have “shared our vision and supported our growth over the past two decades.”
In deciding to take Exactech private, TPG said it saw an opportunity to invest in a company that could grow and compete with larger competitors in the orthopedic industry.
Todd Sisitsky, managing partner at TPG Capital, said the company aims to “identify and partner” with strong companies that are in growing sectors.
“With their strong commitment to patients and surgeons and a comprehensive product portfolio, Exactech has strategically built a platform poised for significant growth. We are thrilled to partner with CEO David Petty, the company founders, the Exactech management team and TPG Capital advisors Jeff Binder and Dan Hann to further realize Exactech’s exciting potential,” Sisitsky said in a statement.
Founded in 1985, Exactech manufactures orthopedic products used to repair bones and joints. The company employs more than 700 people. Its products are distributed in more than 35 countries across the globe.
The company is expected to release its third quarter financial reports on Oct. 30. Revenue could be down somewhat due to hurricanes that ripped through Florida. Earlier this month, the company said its manufacturing facilities were not compromised from the storm, but those of some customers in the southern part of Florida were.
