Encore Medical to Buy Compex Technologies for $109 Million
BY JOHN MCCORMICK, NOVEMBER 14, 2005
Encore Medical Corp. (nasdaq: ENMC) announced this morning that it is expanding its presence in the pain management business with the acquisition of Compex Technologies Inc. (nasdaq: CMPX)in an all-stock transaction valued at $109 million. Under the terms of the agreement, Encore will issue 19 million common shares to Compex shareholders in exchange for all of Compex's outstanding stock. Encore will also assume approximately $15 million of Compex debt. After the close of the deal, Encore shareholders expected to own approximately 73.5 percent of the combined company and Compex shareholders will own about 26.5 percent.
Note that the deal has been approved unanimously by the boards of directors of both companies, but it isn't scheduled to close until March. A number of standard closing conditions remain. The merger is also subject to the approval of both the Compex and Encore shareholders.
Compex, headquartered in New Brighton, Minn., designs and manufactures electrotherapy devices for rehabilitation and pain management.
