CFWH ($.50) announces buyout @ $.579 minimum,
deal expected to close in Q4. You'll make 15+% on your money in less than 3 months...
PRW: The Center for Wound Healing, Inc. to be Acquired by Sverica International
TARRYTOWN, N.Y.--(BUSINESS WIRE)--October 06, 2010--
The Center for Wound Healing, Inc. (OTCBB: CFWH), a leading manager of
comprehensive wound care treatment centers that offer wound care and
hyperbaric oxygen therapy, today announced that it has entered into a
definitive agreement to be acquired by Sverica International, a leading
private equity firm, for approximately $41 million.
Under terms of the agreement, which has been unanimously approved by CFWH's
board of directors, CFWH shareholders will receive $0.60 in cash, subject to
certain adjustments, for each share of CFWH common stock they hold,
representing a 140% premium over the $0.25 closing price on October 5, 2010.
The cash amount that CFWH shareholders will be entitled to receive under the
agreement, giving effect to all possible adjustments, will be at least
$0.579 per share.
Completion of the transaction is subject to customary closing conditions
including CFWH shareholder approval, and the receipt by Sverica of financing
for the transaction in accordance with financing commitments received.
Holders of approximately 68% of CFWH's outstanding common stock have
executed a voting agreement under which they have agreed to vote their
shares in favor of approval of the proposed acquisition.
The transaction is expected to be completed in the fourth quarter of 2010,
subject to customary closing conditions.
Gleacher & Company Securities, Inc. and Butzel Long, a professional
corporation, acted as financial and legal advisors, respectively, to The
Center for Wound Healing, Inc.'s Board of Directors.
About The Center for Wound Healing, Inc.
The Center for Wound Healing, Inc. is a leading manager of comprehensive
wound care treatment centers that offer hyperbaric oxygen therapy ("HBOt")
as well as traditional wound care treatment modalities. The Company manages
32 wound care centers in the eastern United States in partnership with local
acute care hospitals. CFWH was founded by physicians in 1997 with a focus on
establishing in-hospital centers of excellence to treat the growing
incidence of severe grade diabetic wounds of the lower extremities and
wounds that are unresponsive to general wound care treatments. The Company's
centers have consistently achieved high treatment success rates, resulting
in a dramatic increase in patient quality of life and significant cost
savings to the healthcare system.
About Sverica International
Sverica International is a leading private equity firm with over $425
million of assets under management across three funds. The firm acquires
invests in and actively builds companies that are, or could become, leaders
in their industries. Since 1993 Sverica has maintained a "high touch"
operating philosophy of taking an active role in portfolio companies.
Sverica devotes significant internal resources to help its management teams
develop and execute growth strategies.
CONTACT: The Center for Wound Healing, Inc.
Andrew G. Barnett
Chief Executive
Officer
914-372-3152
andrew.barnett@centerwh.com
SOURCE: The Center for Wound Healing, Inc.
Copyright Business Wire 2010
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