Market Features
MIM Corp.(MIMS) and Chronimed (CHMD) have agreed to merge in a stock swap deal that will create one of the nation's largest specialty pharmacies.
Under terms of the deal outlined Monday, the merged company will be called BioScrip Inc. with combined revenue of $1.2 billion at year's end. Shareholders of Minnetonka, Minn.-based Chronimed will receive 1.025 MIM shares for each share they hold. With MIM shares closing at $7.27 Friday, that values the offer at about $7.45 a share. Based on Chronimed's 12.72 million outstanding shares, the deal is worth approximately $574.6 million. MIM said it expects to issue approximately 13.5 million shares to Chronimed shareholders in the merger. MIM shareholders will own approximately 63% of the new company. The merger is expected to close by the end of the year, yield cost savings synergies of approximately $10 million annually and be accretive to 2005 earnings. Upon completion of the merger, BioScrip's headquarters will be in Elmsford, N.Y., and its shares traded on the Nasdaq under the ticker symbol BIOS. Chronimed shares fell 10 cents, or 1.3%, to $7.68 in premarket trading Monday. MIM shares closed at $7.22 Friday. Both companies will report quarterly earnings later today.TheStreet Premium Services
Jim Cramer's Action Alerts PLUS:
Trade right alongside a Wall Street pro — enjoy access to his Charitable Trust portfolio and be sent trade alerts BEFORE he makes a move. Learn MoreOptionsProfits:
Get 50+ trade ideas a week from the industry's top options experts. Plus — exclusive commentary on market trends and essential trading tools. Learn MoreReal Money:
Our team of professional Wall Street Pros — including Jim Cramer, Doug Kass, and Nicholas Vardy — delivers intelligent analysis, timely trade ideas, and colorful commentary. Learn MoreStocks Under $10:
Break into the market with small- and mid-cap stocks... all $10 or less! David Peltier tells you exactly which low-priced stocks he's buying and selling. Learn MoreTo begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
blog comments powered by Disqus
| Dow Jones | S&P 500 | NASDAQ | 10-Year Note |
|
|---|---|---|---|---|
| 12,419.86 | 1,313.32 | 2,837.36 | 16.25 |
Oil *
103.00
|
|
DOWN
160.83 |
DOWN
19.10 |
DOWN
33.63 |
DOWN
1.06 |
10 Yr
1.62%
SPDR Gold
151.91
|
|
-1.28%
|
-1.43%
|
-1.17%
|
-6.12%
|
Data delayed 20 minutes |


Connect with TheStreet