Covidien offered Ev 3 a sum of 2.6 billion US dollars. Covidien is company that specializes in the manufacturing of healthcare products. Yesterday, on Tuesday, 2nd of June 2010, the company announced the news that it has acquired Ev 3 Incorporation. Covidien paid 2.6 billion US dollars for the company.
The acquisition of Ev 3 by Covidien should allow the company to significantly expand its presence in the market. The title of Ev 3 closed on last Friday, 28th May 2010, at 18.92 US dollars. Covidien paid 22.5 US dollars per share. The amount displays approximately nineteen percent premium for each share with respect to the closing price for each share that was announced on last Friday.
Warburg Pincus Group, the group that owned 24 percent shares of Ev 3 has also agreed to sell its shares in the group. Due to its operation the projected business earnings of Covidien are expected to reach between 0.05 USD to 0.08 USD.
Ev 3 has gained a lot of interest due to the quality products that are produced and offered by the company. Ev 3 manufactures a fine line of life saving equipments that are used in many delicate surgical procedures. The company manufactures stents (the balloons that inflate when placed inside the veins) that are used in cardiac surgeries such as Angioplasty. The deal has been finalized between both the company and it awaits approval of the regulators in order to complete before the 31st of July, 2010. Now Covidien is probable to have an edge in the global markets for medicine and surgical instruments.