Air Methods Corp (NASDAQ:AIRM), a medical transport company, is planning to go private in a deal worth $2.5 billion.
The deal to take Air Methods Corp private will have it being acquired by affiliates of American Securities for $43 per share. The offer represents a 20.4% premium over AIRM’s closing price on Jan. 31, 2017, which is when press began to speculate about the deal. The offer is worth $2.5 billion when including net debt.
The affiliates of the private security firm will be using cash to acquire Air Methods Corp. AIRM’s Board of Directors has already given its unanimous approval to the deal. The Board of Directors is also advising shareholders to tender their offers for the deal.
The deal will have American Securities’ affiliates making a cash tender offer for all of the outstanding common shares of Air Methods Corp. It will require at least 50% of shares to be tendered before it can be completed.
Once the affiliates of American Securities have obtained at least 50% of all outstanding AIRM shares, the merger of the company will begin. This will include the right to convert still outstanding shares to the same $43 price in the tender offer.
Goldman, Sachs & Co. and Centerview Partners LLC are acting as financial advisors to Air Methods Corp. Paul, Weiss, Rifkind, Wharton & Garrison LLP and Holland & Hart LLP are providing legal advice to the company. American Securities is getting its legal advice from Weil, Gotshal & Manges LLP.
Air Methods Corp says that it expects the deal with American Securities to close during the second quarter of 2017, as long as the closing conditions are met.
AIRM stock was up 3% as of Tuesday afternoon and is up 35% year-to-date.
