Sharps Compliance (SMED) To Be Acquired For $8.75 Per Share

By Amit Chowdhry ● Jul 12, 2022
  • Sharps Compliance Corp. (NASDAQ: SMED) announced it is being acquired for $8.75 per share. These are the details.

Sharps Compliance Corp (NASDAQ: SMED) – a leading full-service national provider of comprehensive waste management solutions including medical, pharmaceutical and hazardous waste – announced that it has entered into a definitive merger agreement to be acquired by an affiliate of Aurora Capital Partners, a leading middle-market private equity firm. And under the terms of the merger agreement, Aurora will commence an all-cash tender offer to acquire all of the issued and outstanding shares of Sharps for $8.75 per share, which represents a premium of approximately 207% over Sharps’ closing share price on July 11, 2022. The deal has been unanimously approved by the Board of Directors of Sharps.

Following the successful completion of the tender offer, Aurora is going to acquire all remaining shares not tendered in the tender offer through a second-step merger at the same price. And in connection with the entry into the merger agreement, certain directors and executive officers of Sharps have entered into tender and support agreements with Aurora pursuant to which they have, among other things, agreed to tender in the offer all of their shares.

The deal is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and other customary closing conditions. The deal is not subject to any financing contingency and is expected to close in the third calendar quarter of 2022. And upon the completion of the transaction, Sharps will become a privately held company and shares of Sharps common stock will no longer be listed on any public market.

Raymond James & Associates acted as financial advisor and Norton Rose Fulbright US LLP acted as legal advisor to Sharps.

KEY QUOTE:

“Sharps is a leading provider of comprehensive solutions for the small to medium generators of medical, hazardous and pharmaceutical waste. To date, the Company has developed a tremendous customer base by offering route-based and mailback medical waste disposal services and we believe there is significant runway for increasing the market penetration for our MedSafe solution for the safe and compliant disposal of unused medications including controlled substances. In addition to delivering immediate value to our shareholders, this transaction provides Sharps with a long-term partner that is focused on building upon our strong platform.”

— Pat Mulloy, President and Chief Executive Officer of Sharps

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