Hangar Inc shares rise 25% after announcing a definitive merger deal with Patient Square

Hangar Inc. (NYSE: HNGR), a leading provider of O&P (orthotics and prosthetics) patient care solutions and services, the stock rose 25% after news broke that it had signed a definitive purchase agreement with Patient Square Capital, a healthcare investment company, where the latter will buy it in cash for $18.75 per share.

Agreement details

Under the purchase agreement, which was unanimously approved by the company’s board of directors, Hangar Inc shareholders will receive $18.75 per share in cash, representing a premium of approximately $29 % vs. VWAP (Volume Weighted Average Price) 30-day schedule ending July 20. , 2022. This will come with an enterprise value of around $1.25 billion.

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Once the transaction is completed, Hangar Inc will become a private company and its common stock will no longer be traded on the NYSE (New York Stock Exchange). The transaction is expected to close by the fourth quarter of fiscal 2022.

Management declarations

Hangar Inc CEO and President Vinit Asar said he was pleased to announce the deal as the deal will lead to more substantial and immediate value creation for their stakeholders.

Mr. Asar said:

This transaction represents the culmination of an extensive review by our Board of Directors of strategic alternatives to deliver value to our shareholders and provide financial flexibility for our company to pursue its future growth initiatives. Patient Square Capital recognizes the value of our brand and the quality of our world-class team, and relies on similar values ​​that guide our actions.

Mr. Asar says Patient Square Capital is the perfect partner because they share a similar long-term vision.

Jim Momtazee, Managing Partner of Patient Square, said:

I have followed Hanger’s impactful work closely for most of my career and sincerely respect the positive impact they have on their patients and clients. Patient Square appreciates the steps the management team has taken to strengthen the company’s position and is excited to partner with Hanger’s management team to support the next phase of their growth.

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