Lifecore Biomedical acquired by Warburg Pincus

Source: Healthcare Exec

Date :15/01/2008 05:57:15

Lifecore Biomedical Inc. enters into definitive agreement with private equity company Warburg Pincus to be acquired through a tender offer, followed by a merger, for a price of $17.00 per share.

The agreement values the company at approximately $239 million and is subject to the valid tender of a majority of Lifecore Biomedical's fully diluted common shares, regulatory approvals and other customary conditions, but is not subject to any financing condition, Lifecore said Tuesday.

Privatization

In a statement, Minnesota-based Lifecore said that its Board of Directors has unanimously approved the definitive agreement and has resolved to recommend that Lifecore's shareholders tender their shares in connection with the tender offer contemplated by the definitive agreement.

"…We believe that this transaction with Warburg Pincus is positive for our employees and our customers," said Dennis J. Allingham, President and CEO of Lifecore Biomedical.

“The transaction will allow us to continue to provide exceptional products to our customers. As a private company, Lifecore will have greater flexibility to focus on its long-term strategic direction,” he said.

Lifecore plans to solicit better proposals from third parties in the next 30 days, it said in a statement.

The transaction is expected to close by the end of the first quarter of 2008.

January 15, 2008