The terms of the deal call for $44.00 per share of Medicis in an all cash transaction. This transaction values Medicis at roughly $2.6 billion, and it has been unanimously approved by the boards of directors of both companies.
Today’s merger is a 39% premium being paid for Medicis after its closing price of $31.56 on Friday. Medicis has traded in a 52-week trading range of $29.76 to $40.10. Medicis has been public nearly 20 years and this gets the stock near an all-time high.
The transaction is expected to close in the first half of 2013 and the companies claim that cost synergies should run at least $225 million per year within six months of closing.
Medicis shares are trading up almost 38% higher at $43.50 so far this morning.
JON C. OGG
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