MORE: Abbott to Buy St. Jude for ~$85/Share Cash, Stock
(Bloomberg) -- St. Jude shareholders will get $46.75 cash and 0.8708 shares of Abbott, representing total consideration of ~$85/share, according to e-mailed statement from companies.
- St. Jude up 29% pre-market, trades as high as $80
- Deal expected to add to ABT’s adj. EPS in first full year after closing, expected to add 21c to EPS in 2017 and 29c in 2018
- Combination expected to result in annual pre-tax savings of $500m by 2020, including sales and oper. benefits
- One-time deal-related costs and integration expenses will be provided at future date
- Total transaction equity value $25b based on ABT’s 5-day volume-weighted avg share price
- ABT will assume or refinance STJ’s $5.7b in net debt
- ABT intends to fund cash portion of deal with medium- and long-term debt
- ABT separately expects to issue $3b common stock in secondary market to rebalance capital structure
- Financing for STJ and previously announced Alere purchase “contemplates financing capacity to close both transactions”
- ABT conf. call 8am www.abbottinvestor.com
- STJ postponing May 4 annual meeting due to deal
Statement:
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Alert:
HALISTERSource: BFW (Bloomberg First Word)
Tickers STJ US (St Jude Medical Inc)
ABT US (Abbott Laboratories)
ALR US (Alere Inc)
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