Encore Medical Inks $870M Deal to Go Private

Austin, TX-based Encore Medical, manufacturer of orthopedic medical devices, has announced it will go private in a newly-inked $870 million merger deal with a company controlled by Blackstone Capital Partners V LP.
    The transaction — with a total value of about $870 million — will be financed through a combination of equity contributed by Blackstone and debt financing from Bank of America Corp. and Credit Suisse Group.
    Encore entered into the merger agreement based on the unanimous recommendation by a special committee comprised of independent directors of Encore’s board of directors and the unanimous consent of its full board of directors. Stockholders representing approximately 15% ownership of Encore’s common stock have entered into voting agreements in which they have agreed to vote or consent in favor of the merger.
    It is expected that members of Encore’s existing senior management team will retain their current positions after the transaction closes and will participate in the ownership of the private concern.
    “This transaction offers outstanding value for our stockholders with a significant premium over where our stock has traded during the past year. It also provides Encore with a strong financial partner, with knowledge of the health care industry, to assist in our future growth,” said Encore CEO Kenneth Davidson.
    Encore and Blackstone expect the transaction to close later this year.