C.R. Bard Inc. (BCR) has agreed to buy SenoRx Inc. (SENO) for
about $213 million, giving Bard a company that specializes in
products related to the diagnosis and treatment of breast
cancer.
The health-products maker had agreed to pay $11 a share, an
approximately 14% premium to Tuesday's closing price. Bard said it
expects the transaction to cut 2010 earnings by 3 cents to 6 cents
a share, excluding items that affect comparability. Analysts, on
average, had expected the company to earn $5.55 this year.
"We believe the merger represents a great opportunity for the
combined companies to create product leadership by offering a
broader range of high-quality breast care products to our
customers," said SenoRx President and Chief Executive John
Buhler.
The deal is seen closing in the third quarter.
Last month, Bard said its first-quarter profit rose 7% on an
increase in sales. Medical-device companies saw demand slump last
year as hospitals and individuals cut back on their products. Bard
Chairman and CEO Timothy Ring had said that the company hadn't
"seen any meaningful change in hospital market trends." SenoRx in
February said it swung to a fourth-quarter loss even as it saw
record revenue.
SenoRx shares were recently up 12.2% at $10.86, while Bard
shares were down 6 cents to $85.43.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@dowjones.com