Warburg’s $239m health deal progresses

Lifecore Biomedical has ended its go-shop period after discussions with more than 50 alternate partners.

Warburg Pincus’ $239 million (€164 million) acquisition of US-based Lifecore Biomedical is closer to closing, as the medical device maker’s 30-day go-shop period has resulted in no superior offers.

During the go-shop period, Lifecore said its independent financial advisor Piper Jaffray held discussions with more than 50 alternative acquirers.

Agreed on 15 January, the transaction will be conducted through a tender offer, followed by a merger, for a price of $17 per share in cash. The price represents a premium of approximately 30 percent over the volume weighted average price of Lifecore’s shares for the 30 days prior to the merger agreement, which was unanimously approved by the company’s board of directors.

Lifecore

Lifecore develops, manufactures and markets biomaterials and medical devices for use in various surgical markets. The company was founded in 1965 as American Medical Research, was publicly listed in 1968 under the name DIAGNOSTIC and was renamed Lifecore in 1987.

New York-based private equity shop Warburg Pincus has invested approximately $6.2 billion in healthcare-related companies including $2.7 billion in medical devices since 1971. Previous medical device acquisitions include American Medical Systems, Bausch & Lomb and ev3. The firm has $20 billion in assets under management and an additional $10 billion available for investment.