Endo Pharmaceuticals Holdings Inc., the maker of the painkiller Percocet, said it will acquire HealthTronics Inc., a provider of urologic services and devices, in an all-cash deal for $223 million.
Endo will purchase all outstanding shares of HealthTronics for $4.85 per share, the Chadds Ford, Pennsylvania-based company said in a statement today. The deal is a 34 percent premium on HealthTronics’ $3.62 price at the 4 p.m. New York time close of Nasdaq Stock Market trading. Endo also will assume Austin, Texas-based HealthTronics’ net debt of about $35 million, bringing the value of the deal to about $258 million, the company said in its statement.
The acquisition will expand Endo’s urology offerings to include therapies for prostate cancer and surgical procedures to remove kidney stones. Endo raised its guidance for 2010 revenue to $1.63 billion to $1.68 billion and adjusted earnings per share to $2.06 to $2.14 as a result of the purchase.
“This strategic acquisition immediately elevates Endo from a pharmaceutical company to a diversified partner to physicians and payers in the treatment and diagnosis of urological and pain-related conditions,” Endo Chief Executive Officer Dave Holveck said in the statement.
Endo rose 27 cents, or 1.3 percent, to $21.77 at the close of Nasdaq trading before the deal was announced. The company has gained 34 percent in the past 12 months.