Hangar Inc (NYSE: HNGR), a top provider of O&P (orthotic and prosthetic) patient care solutions and services, stock went up 25% after it announced that it has executed a definitive purchase agreement with Patient Square Capital, a healthcare investment company, where the later will acquire it in cash for $18.75 per share.
Details of the agreement
According to the purchase agreement, which was unanimously approved by the company’s BoD, Hangar Inc shareholders will get $18.75 per share in cash, representing a premium of roughly 29% to the 30-day calendar VWAP (volume-weighted average price) ending July 20, 2022. This will come alongside an enterprise value of roughly $1.25 billion.
Once the transaction is complete, Hangar Inc will turn into a private-held corporation, and its common shares won’t be tradable on the NYSE (New York Stock Exchange) anymore. The deal is expected to be complete by the fourth quarter of the 2022 financial year.
Hangar Inc’s Chief Executive Officer and President, Vinit Asar claimed he was happy to be announcing this deal as the agreement will lead to more substantial and immediate value creation for their stakeholders.
Mr. Asar said:
This transaction represents a culmination of an extensive review by our Board of Directors of strategic alternatives to provide value to our stockholders and to offer financial flexibility for our company to pursue future growth initiatives. Patient Square Capital recognizes the value of our brand and the quality of our world-class team, and is grounded in similar values that guide our actions.
Mr. Asar claims that Patient Square Capital is the perfect partner because they share a similar long-term vison.
Jim Momtazee, Patient Square Managing Partner, said:
I have closely followed Hanger’s impactful work for most of my career and genuinely respect the positive impact they have on their patients and customers. Patient Square values the steps taken by the leadership team to strengthen the company’s position and is thrilled to partner with the Hanger management team to support the next phase of their growth.
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