Gen-Probe-Hologic Deal Moves Ahead - Analyst Blog
June 22 2012 - 8:45AM
Zacks
In relation to its acquisition by
Hologic Inc. (HOLX), Gen-Probe
Inc. (GPRO) revealed that the federally required 30-day
waiting period under the Hart-Scott-Rodino Antitrust Improvements
Act of 1976 (“HSR Act”) ended on June 19. The companies were not
required to provide any additional information to the Federal Trade
Commission. Following the expiry of the waiting period, the
companies can now proceed with the closure of the deal.
The HSR Act, an amendment to U.S.’s
antitrust law, requires companies to submit a detailed filing with
the U.S. Department of Justice and Federal Trade Commission for
mergers and acquisitions. The agencies ensure that the merger does
not impact the nation’s commerce adversely.
Gen-Probe, on April 30, announced
its takeover by women’s healthcare major Hologic for $3.7 billion
(or $82.75 a share). The transaction is expected to complete
by third quarter of 2012. Gen-Probe believes that the merger will
leverage the women’s Diagnostic product range of both the companies
and thereby increase the focus on the molecular diagnostics market.
Further, the acquisition will benefit the shareholders as it will
offer additional cash value to their shares.
Both the companies disclosed that
the integration process is moving smoothly and a planning team is
vigorously working on important issues regarding proper synthesis
of every aspect of the business. However, the transaction is
subject to certain clearances and approval from the German Federal
Cartel Office.
Perella Weinberg Partners and
Goldman Sachs (GS) have been appointed financial
advisors for Hologic while Morgan Stanley & Co. LLC, a
wholly-owned subsidiary of Morgan Stanley (MS),
will fulfill the same responsibilities for Gen-Probe. On the other
hand, Jones Day and Brown Rudnick LLP are acting as legal advisors
for Hologic while Skadden, Arps, Slate, Meagher & Flom LLP and
Cooley LLP will act as legal advisors for Gen-Probe.
Gen-Probe is a dominant player in
the rapidly expanding nucleic acid testing (“NAT”) market, the
fastest growing segment in the clinical diagnostic market. The
company is a market leader in domestic gonorrhea and chlamydia
testing with its PACE and APTIMA assay product lines.
Gen-Probe competes with more
established firms in the molecular diagnostic industry such as
Roche (RHHBY), Becton, Dickinson
(BDX) and Abbott Labs (ABT). Currently, we have a
long-term Neutral recommendation on Gen-Probe, which is in tandem
with a short-term Zacks #3 Rank (Hold).
ABBOTT LABS (ABT): Free Stock Analysis Report
BECTON DICKINSO (BDX): Free Stock Analysis Report
GEN-PROBE INC (GPRO): Free Stock Analysis Report
GOLDMAN SACHS (GS): Free Stock Analysis Report
HOLOGIC INC (HOLX): Free Stock Analysis Report
MORGAN STANLEY (MS): Free Stock Analysis Report
(RHHBY): ETF Research Reports
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