Sign up USA
Proactive Investors - Run By Investors For Investors

Permira takes Atrium Innovations private for $1.1 billion

Permira takes Atrium Innovations private for $1.1 billion

Shares of Atrium Innovations (TSE:ATB) spiked to their highest level in six years after Permira funds agreed to buy the company for $24 per share.

Permira, a European private equity firm, will become the majority owner of the natural supplement manufacturer with the cash purchase of three-quarters of all outstanding shares, while two Quebec pension funds, Fonds de solidarité and Caisse de dépôt et placement du Québec, will split the remaining stake. Including the assumption of debt, the transaction values Atrium at $1.1 billion.

The offer is a 27% premium to the 30-day volume weighted average price and a 23% premium on Thursday's close.
Atrium said it will maintain its head office in Québec and complete the expansion of its manufacturing facility in the province. No jobs will be lost as a result of the transaction.

The company's board has recommended that shareholders accept the offer.

“Atrium intends to continue to pursue its growth strategy both organically and through acquisitions. The Permira funds’, the Fonds’ and CDPQ’s resources provide us the ability to accelerate our growth with the financial ability to expand globally," said Atrium president and chief executive officer Pierre Fitzgibbon in a statement.

According to terms of the agreement, Atrium has a 45-day period, beginning today, during which it can solicit other deals which, if materialize, Permira will have the right to match even after the go-shop period elapses. If Atrium agrees to another proposal during the go-shop period, it will have to pay Permira $13.5 million. The break fee rises to $23.1 million under undisclosed circumstances.

Prior to the announcement of this transaction, Atrium's market value had grown two-thirds this year.



Register here to be notified of future TSXC Company articles
View full TSXC profile

Canadian Market Wrap Timeline

Article
October 16 2015

Related Articles

shutterstock_249210421-(1).jpg
February 15 2016
Exploration upside will be supported by cashflow in future says chairman
shutterstock_176428352.jpg
April 01 2016
Century Global Commodities is putting some hard work to good use with a change of strategy that will see it capitalise on the huge potential of its mining database.
Nevada2.png
February 16 2016
Tertiary Minerals (LON:TYM) is the UK's only public traded fluorspar company - a mineral the firm describes as "strategic".
Copyright © Proactiveinvestors.com, 2016. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC