American Renal Associates Announces Definitive Agreement to be Acquired by Nautic Partners

American Renal Associates Holdings, Inc. (NYSE: ARA) shares soared approximately 67% on Friday after the company’s announcement of a decisive agreement to be acquired by Innovative Renal Care, LLC.

The company told that this is an all-cash transaction that values the Company at a total about $853 million. As per the terms of the agreement, ARA shareholders will receive $11.50 per share in cash, a premium of 66% to the Company’s closing price on October 1st, 2020.

The agreement approved by The Board of Directors of American Renal Associates. The transaction is anticipated to close in the first quarter of 2021, depending on shareholder and regulatory approvals, as well as the satisfaction of customary closing conditions. Centerbridge Partners has entered into a voting agreement pursuant to which it has agreed to vote in favor of the transaction.

The agreement includes a 40-day “go-shop” period, which allows ARA’s Board of Directors, with the assistance of independent financial and legal advisors, to actively solicit alternative acquisition proposals from third parties, and potentially enter into negotiations with parties that make alternative acquisition proposals.

The Board has appointed a special committee of independent directors to oversee the go-shop process. ARA will have the right to terminate the agreement with Nautic to enter into a superior proposal subject to the terms and conditions of the agreement.

There can be no assurance that this process will result in a superior proposal, and ARA does not intend to disclose developments with respect to the solicitation process unless and until its special committee or the Board of Directors makes a determination requiring further disclosure. The period begins on the date of the agreement.

Investment funds and accounts managed by HPS Investment Partners, LLC provided committed financing for the transaction.

Recent Trade

American Renal Associates Holdings, Inc. (NYSE: ARA) shares surged 66.47% and closed at $11.52 on Friday. The company opened with the share price of $11.35 and volume was 2.24 million shares. At the time of writing, the company has market value of $239.50 million with having 32.86 million shares outstanding.

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