Savaria Corporation (TSX: SIS) has agreed to acquire Span-America Medical Systems, Inc. (NASDAQ: SPAN) for US $29.00 per share for a total consideration of approximately US $80.2 million or CDN $109.5 million.
In the most recently completed trailing twelve months (TTM) ended December 31, 2016, Span-America recorded net sales of US $61.4 million or CDN $83.8 million EBITDA of US $7.1 million or $9.7 million.
The all-cash transaction is expected to be financed by Savaria’s available cash and a financing commitment from National Bank of Canada and a $27.8 million equity private placement of subscription receipts led by National Bank Financial Inc. and GMP Securities L.P.
Blake, Cassels & Graydon LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP act as Canadian and US legal counsel to Savaria.
Robert W. Baird & Co. acts as financial and Wyche acts as legal counsel to Span-America Medical Systems.
Founded in 1970 , Greenville, South Carolina based Span-America manufactures and markets a comprehensive offering of therapeutic support surfaces and pressure management products for the medical market.
photo credit: Span-America Medical Systems