A Canadian company has agreed to acquire Greenville-based Span-America Medical Systems Inc. for $109.5 million Canadian dollars ($80.2 million).
The deal, an all-cash tender offer, will be for $29 per share, according to news releases from both companies. The deal is expected to close by the end of the second quarter.
Savaria Corp., based in Laval, Quebec, “provides accessibility solutions for the elderly and physically challenged to increase their mobility and independence.” Its equipment line includes stair lifts, vertical and inclined wheelchair lifts and elevators for home and commercial use.
“The acquisition of Span-America provides Savaria with much greater scale while advancing our strategic plan of attaining CA$500 million in revenue within five years,” Savaria CEO, President and Chairman Marcel Bourassa said in the news release from Savaria. “In addition, the financing commitment will enable Savaria to maintain a strong balance sheet with the financial flexibility to pursue additional acquisition opportunities as they may arise.”
Tom Henrion, chairman of the Span-America board of directors, said in the news release from Span-America that the board unanimously approved the deal and felt the price “represents an immediate and substantial cash value as well as a significant premium over our stock price.”
“We believe it fully values the company for our shareholders,” Henrion said. “Savaria’s offer reflects the value that our management and employee team has created for our shareholders.”
The share price is a 33% premium to Span-America’s closing share price on the Nasdaq on April 28. According to Savaria, it will finance the acquisition with cash on hand and a new, CA$110 million revolving credit facility from the National Bank of Canada, as well as CA$27.8 million in a private equity offering.
According to Savaria’s news release, the facility in Greenville will allow Savaria to manufacture certain accessibility products for sale into the U.S. market.
Span-America produces mattress systems and other products for medical facilities across North America. Its corporate headquarters is located in Greenville and the company has a distribution center in Salt Lake City. The company has approximately 130 employees in Greenville and 250 overall.