Prosthetic device maker DJO Inc. said it’s close to completing its $1.6 billion merger with ReAble Therapeutics, based in Austin, Texas, an affiliate of the Blackstone Group. DJO is holding a special shareholders meeting Nov. 6 to vote on the deal that was first announced July 15.
“We are well on our way to closing the transaction,” said Les Cross, president and chief executive officer of DJO, on Oct. 29 as the company reported its third-quarter financial results.
The companies signed a definitive agreement July 15 for ReAble to purchase DJO for $50.25 per share in a deal valued then at about $1.6 billion, including assuming DJO’s debt of about $300 million.
DJO reported its third-quarter net profits of $6.7 million on revenue of $119.8 million for the quarter ended Sept. 29. Profits were up about 50 percent from the third quarter of 2006, when DJO reported net income of $4.3 million on revenue of $113.2 million.
For the nine months, DJO reported net income of $16.1 million on revenue of $354.8 million. That compared with the like period of 2006 when it reported net income of $11.6 million on revenue of $302.4 million.
Traded on the New York Stock Exchange under DJO, shares declined Oct. 29 by 14 cents to $49.74. The stock has ranged from $31.07 to $53.55 in the past 52 weeks.
, Mike Allen