Cancer treatment firm US Oncology of Houston is planning to go private by accepting a buyout offer from its largest shareholder.
US Oncology signed an agreement to merge with Oiler Acquisition, an affiliate of Welsh, Carson, Anderson & Stowe IX, an investment partnership that owns approximately 14.5% of US Oncology’s common stock.
Under the terms of the agreement, holders of the company’s common stock, other than Welsh Carson, will receive $15.05 per share in cash for their shares, which represents a premium 18.5% above the March 19 closing price of $12.70, US Oncology said. The transaction is valued at approximately $1.7 billion, including consideration for outstanding stock options and the assumption of certain debt obligations pursuant to the merger, according to the firm.
Upon completion of the proposed merger, US Oncology will become a privately held company. Members of senior management of US Oncology will continue as employees of the private entity, the company said. The transaction is expected to be completed in the second quarter of this year.
By AuntMinnie.com staff writers
March 23, 2004
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