Blackstone Entity to Acquire DJ Orthopedics for $1.6B, 19.4% Premium

ReAble Therapeutics, a company owned by The Blackstone Group, said it has agreed to buy DJ Orthopedics [DJO] for $1.6 billion in cash, or $50.25/share, representing a 19.4% premium over its Friday close of $42.10. Blackstone has committed to provide the equity financing for the transaction. DJO's Board of Directors and a Transaction Committee unanimously approved the deal and recommend shareholders vote in favor of the merger. "We believe that the value of this transaction appropriately recognizes DJO's leadership position in non-operative orthopedics, demonstrated by our highly respected brands, innovative products, and commitment to continuous improvement," said Les Cross, President and CEO of DJO, in a statement. The transaction is expected to close in Q4, subject to certain closing conditions and approvals. DJO may solicit superior third-party proposals overs the next 50 days and would incur an $18.7m break-up fee in the event of an execution of a definitive agreement.

Sources: Press release, MarketWatch
Commentary: DJO Incorporated: Buyout Prone MMI Investments Discloses 9.4% Stake • DJ Orthopedics: Creaky Joints, Healthy Body - Barron's • Is Blackstone Group Going to $80 or $0?
Stocks/ETFs to watch: DJO Inc. (DJO), The Blackstone Group L.P. (BX). Competitors: Biomet Inc. (BMET), Smith & Nephew plc (SNN), Stryker Corp. (SYK)

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