("Emergent Agrees To Be Acquired By Universal Hospital
Services," published at 8:28 a.m. EST, misidentified Universal
Hospital Services Inc. as behavioral health company Universal
Health Services Inc. (UHS). The corrected version follows.)
Emergent Group Inc. (LZR) agreed to be acquired by
medical-equipment rental and outsourcing company Universal Hospital
Services Inc. in a deal valued at about $59.2 million that will
help the hospital company expand its surgical equipment
offerings.
Emergent's shares soared 38% to $8.39 in recent premarket
trading as Universal Hospital Services is offering $8.46 per share,
a 40% premium to Emergent's Friday close. Emergent shares as of
Friday's close were down 22% in the past year.
Universal Hospital estimated the deal, expected to close by the
end of the second quarter, has a total value of about $70 million
including debt assumption.
Emergent has 21 days to "go shop" for a superior offer.
The deal comes as Americans have been using fewer medical
services lately amid a sluggish economy and high unemployment.
The directors and executive officers of Emergent Group, together
holding about 47% of the outstanding shares, have agreed to tender
their shares unless the deal is terminated as a result of a
superior proposal.
The deal, which Emergent said is expected to close in 45 to 90
days, will expand University Hospital's surgical equipment
offerings.
PRI Medical currently operates in 16 states and provides
surgical equipment and mobile laser technology, as well as
consumable items, to hospitals, outpatient surgery centers and
physicians' offices.
Emergent in November reported that third-quarter earnings fell
15% as revenue declined 4.8% premarket. The stock is up 48% in the
past year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com