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Linde buys Lincare Holdings Inc. for $4.6 Billion

Jul 2 2012, 3:33am CDT | by

German Linde Group has entered into a definitive agreement for the acquisition of Lincare Holdings Inc., a US-based homecare health company.

Under the terms of the agreement, Linde will make a tender offer for all outstanding shares of common stock of Lincare at USD 41.50 per share in cash. Following the purchase of shares in the tender...

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Linde India appoints Sanjiv Lamba as director

Source: Moneycontrol.com  |   May 19 2013, 9:49pm CDT

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46 weeks ago

Linde buys Lincare Holdings Inc. for $4.6 Billion

Jul 2 2012, 3:33am CDT | by

German Linde Group has entered into a definitive agreement for the acquisition of Lincare Holdings Inc., a US-based homecare health company.

Under the terms of the agreement, Linde will make a tender offer for all outstanding shares of common stock of Lincare at USD 41.50 per share in cash. Following the purchase of shares in the tender offer, Linde intends to complete the acquisition of Lincare through a merger, following which Lincare will become a wholly owned subsidiary of Linde.

The price of USD 41.50 represents a premium of 64% over Lincare's share price of USD 25.26 on June 26, 2012 (the last day prior to press reports speculating as to Lincare's auction process), and also represents a premium of 49% over the three month volume weighted average price per Lincare share. The total consideration of the transaction will be USD 4.6 bn.

"This strategic acquisition enables us to take the next big step in this stable, sustainable and profitable business field," Prof. Dr.-Ing. Wolfgang Reitzle, CEO of Linde AG, explained. "Against the background of demographic changes, the healthcare industry is a megatrend in which we will be able to participate more strongly in a new setup. Together with Lincare, we will become the global leading healthcare provider within the gases industry and further internationalize our business. Lincare, as the industry leader in the US, provides us an ideal platform to roll out our innovative products − which are already successful, particularly in Europe − into the U.S., the largest region for healthcare revenues globally. Our U.S. subsidiary, LifeGas, already enjoys a close business relationship with Lincare for several years. We are looking forward to welcoming the Lincare management and all employees to The Linde Group."

"We are very pleased to make this announcement," John P. Byrnes, CEO of Lincare, said, "the Lincare Board believes that being part of a world-class organization will afford the company benefits it would not be able to realize on its own. This transaction will benefit all of the stakeholders involved and we look forward to being part of the Linde Group."

The Linde Group and Lincare have common roots: Lincare was originally known as Linde Homecare Medical Systems and had grown out of the Americas business of Linde at the beginning of the 20th century. Linde Homecare Medical Systems became a subsidiary of Union Carbide when it acquired Linde's U.S. business in 1917. Today's Lincare was carved out from Union Carbide in 1987.

 

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<a href="/latest_stories/all/all/2" rel="author">Luigi Lugmayr</a>
Luigi Lugmayr (Google) is the founder of I4U LLC and is a news junkie. He is posting hot trending stories across the broad range of Balla Network sites. Tip Luigi with your hot trending news and memes here.

 

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