Hanger (HNGR) Stock: Why It Surged Over 24% Today

By Amit Chowdhry ● Jul 22, 2022
  • The stock price of Hanger Inc (NYSE: HNGR) surged by over 24% during intraday trading today. This is why.

The stock price of Hanger Inc (NYSE: HNGR) – a leading provider of orthotic and prosthetic (O&P) patient care services and solutions – surged by over 24% during intraday trading today. Investors are responding to Hanger announcing that it has entered into a definitive agreement to be acquired by Patient Square Capital, a dedicated health care investment firm.

Under the terms of the deal, which has been unanimously approved by Hanger’s Board of Directors, Hanger stockholders will receive $18.75 in cash per share, representing an approximately 29% premium to the 30 calendar day volume-weighted average price (VWAP) ending July 20, 2022, and a total enterprise value of approximately $1.25 billion. And upon completion of the transaction, Hanger will become a privately held company, and its common stock will no longer be traded on the New York Stock Exchange (NYSE).

The deal will be financed through a combination of committed equity financing provided by Patient Square Equity Partners, LP, as well as committed debt financing to be led by funds managed by Ares Capital Management LLC. And the deal is expected to close in the fourth quarter of 2022, subject to the receipt of stockholder approval, regulatory approvals, and the satisfaction of other customary closing conditions. Following the closing of the deal, Hanger will continue to be led by Asar, who has been its President and CEO for more than a decade, and will maintain its headquarters in Austin, Texas.

KEY QUOTES:

“I’m very pleased to be announcing this agreement today as the transaction will result in immediate and substantial value creation for our stockholders. This transaction represents a culmination of an extensive review by our Board of Directors of strategic alternatives to provide value to our stockholders and to offer financial flexibility for our company to pursue future growth initiatives. Patient Square Capital recognizes the value of our brand and the quality of our world-class team, and is grounded in similar values that guide our actions. They share the same long-term vision for our company, which makes them an excellent partner for the next phase of our journey.”

— Vinit Asar, Hanger’s President and Chief Executive Officer

“I have closely followed Hanger’s impactful work for most of my career and genuinely respect the positive impact they have on their patients and customers. Patient Square values the steps taken by the leadership team to strengthen the company’s position and is thrilled to partner with the Hanger management team to support the next phase of their growth.”

— Patient Square Capital Managing Partner Jim Momtazee

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.