HIG Capital To Acquire Allion Healthcare

Allion Healthcare has entered into a definitive merger agreement with HIG Capital. As per the agreement, Allion will be acquired and taken private by an affiliate of HIG Capital, in a transaction valued at approximately $278m, including the assumption or repayment of approximately $79m of indebtedness. Reportedly, the agreement was unanimously approved by Allion’s board of directors, including a special committee of independent directors.

The company has said that, under the terms of the agreement, Allion stockholders would receive $6.60 per share in cash, representing a premium of 30.2% over Allion’s average share price for the five trading days prior to the execution and public announcement of the transaction.

Mike Moran, chairman and CEO of Allion, said: “Our agreement with H.I.G. provides a compelling all-cash premium to our shareholders. Throughout this process, our board has been committed to delivering value and liquidity to our shareholders, and we believe this transaction will accomplish both of those objectives.”

Reportedly, the transaction is expected to close in the first quarter of 2010, subject to customary closing conditions, including customary antitrust and regulatory approvals.