The two companies signed a definitive agreement under which Owens & Minor will acquire Medical Action Industries for $13.80 a share in cash. The deal represents a transaction value of about $208 million, including assumed debt.
"With attractive margins and a strong competitive position, we expect this transaction to create value for shareholders and establish a scalable platform for future growth," Owens & Minor CEO Craig R. Smith said in a press release.
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TheStreet Ratings team rates MEDICAL ACTION INDUSTRIES as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate MEDICAL ACTION INDUSTRIES (MDCI) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, weak operating cash flow and poor profit margins."