CRH Medical Corporation (NYSE: CRHM) shares are surging on Monday after the company announced it will be acquired by WELL Health for $4 per share.
The deal represents an aggregate purchase price of approximately $292.7 million and a transaction value of about $369.2 million inclusive of credit facility.
It also represents a premium of approximately 83% to the closing price of CRH shares on Friday the 5th of February, the last trading day before the announcement.
“This transaction is the logical next step for CRH as WELL adds CRH to its portfolio of healthcare related businesses” “said Tushar Ramani CEO of CRH.
“Since joining the Company, my mandate has been to drive the value of CRH through organic and acquisitive growth, and the results of those efforts are reflected in the premium being paid to shareholders in this transaction,” added Ramani.
While the acquisition is not subject to any financing conditions, WELL Health announced today that it has received binding commitments in connection with a concurrent non-brokered private placement financing that is expected to close on or before the 15th of February 2021.
CRH shares are trading 80% higher following the open on Wall Street priced at $3.94.