Zoll Medical Shares Soared: What You Need to Know
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What: Shares of Zoll Medical (NAS: ZOLL) surged 24% today after Japanese chemical manufacturer Asahi Kasei agreed to acquire the medical device maker for about $2.2 billion.
So what: The all-cash deal values Zoll at $93 per share and represents a 24% premium to its Friday closing price. Asahi Kasei generates more than half of its sales from its chemicals and fibers business, so it's no surprise that management is making the move to diversify and grow its global health-care segment.
Now what: Zoll will become a wholly owned subsidiary of Asahi upon completion of the deal, maintaining its current management team and operations. "This transaction will allow us to build on Zoll's strong U.S. business position and technology leadership, with Zoll forming the cornerstone of our critical care business," Asahi President Taketsugu Fujiwara said. So while it's certainly possible that another suitor for Zoll can come along, holding out for a dramatically better offer seems risky.
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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