Shares of dialysis service provider American Renal Associates (ARA) – Get Report jumped over 67% Friday after the company entered a definitive agreement to be acquired by Innovative Renal Care, a unit of private equity firm Nautic Partners.
The stock of the Beverly, Mass., company rose 66.50% to $11.60 at last check.
The all-cash deal values ARA at $853 million, the company said. The shareholders at ARA, backed by Centerbridge Partners, will receive $11.50 per share in cash, a premium of 66% to ARA’s closing price on Oct. 1, as per the terms of the agreement.
The transaction is expected to close in the first quarter of 2021, subject to shareholder and regulatory approvals, as well as the satisfaction of customary closing conditions. The board of ARA unanimously approved the agreement.
Centerbridge Partners has entered into a voting agreement pursuant to which it has agreed to vote in