Blackstone Unit to Acquire DJO for $1.3 Billion
A unit of private equity giant Blackstone Group
The cash offer of $50.25 per share represents a 19 percent premium over DJO's closing price of $42.10 on Friday.
The deal will bring together DJO and medical device maker ReAble Therapeutics, formerly known as Encore Medical. The companies make complementary orthopedic and pain-management products, DJO said.
A Blackstone affiliate is the controlling shareholder of ReAble. The affiliate will provide the equity financing for the deal.
The DJO transaction is worth $1.6 billion, including $300 million of assumed debt, and is expected to close in the fourth quarter.
DJO will have to pay ReAble a break-up fee of $18.7 million if the deal falls through. The DJO board has unanimously approved the transaction.
Wachovia Securities is the financial advisor to DJO, while Credit Suisse is advising ReAble and Blackstone.