MEDICAL device maker ClearStream Technologies said it has agreed to be bought by New Jersey-based CR Bard for about £43.8m in cash.
The company, whose medical devices are used to clear blocks in the coronary and peripheral arteries, said the offer had been pitched at 85p a share, at a premium of 84 per cent to the stock’s Monday close.
Ireland-based ClearStream, which has been advised by finnCap, considers the terms of the offer fair and reasonable.
Bard, which manufacturers vascular, urology, oncology and surgical speciality products, has made the offer through Bard Bidco, its Irish unit.
“The acquisition of ClearStream represents a compelling strategic opportunity for Bard, enabling us to strengthen our leadership in vascular medical devices,” Bard chairman and chief executive Timothy Ring said.
ClearStream chief executive Andrew Jones said: “The Board believes that the offer being made by Bard represents a very attractive opportunity for ClearStream shareholders to realise the value created by ClearStream’s development and growth since being admitted to Aim in 2004.
“There will be further growth under the Bard stewardship.”
London-listed shares in ClearStream shot up 75 per cent yesterday to 81.25p, just short of the premium offer price.
MEET THE ADVISERS: FINNCAP
MARC Young led the team at finnCap, which advised ClearSteam, while Barclays Capital advised Bard.
The deal was struck after a string of meetings in Ireland and London with the two companies – who already did business together – coming to a relatively swift amicable agreement.
FinnCap specialises in small cap deals and is led by chief executive Sam Smith, while City veteran Jon Moulton is non executive chairman.
It is understood that the price of 85p a share was identified as both parties as a fair price given market conditions and the performance of the company.
Bard was keen to extend its reach in the heart healthcare market and saw ClearStream as the ideal fit, particularly with the companies already enjoying a business relationship.
The ClearStream/Bard agreement is just one of the deals finnCap has brought to a successful conclusion over the past few years.
Young last year worked on an £8.5m fundraising plan by Redstone. The company also brought about the Europa Oil & Gas £2.1m placing, China Food’s £2.7m placing and advised Lansdowne Oil & Gas on its £5m placing.
Meanwhile Horizonte Minerals sealed a £8.25m placing and SacOil holdings was admitted to the aim, with the advice of finnCap.
The firm also helped Ascent Resources seal a £17m placing and Botswana Diamonds win Aim admission.