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ICU Medical, Inc. Message Board

  • euronyc2001 euronyc2001 Oct 22, 2013 8:24 AM Flag

    ICUI - the sale is still on

    We've learned from Dealreporter that ICUI started exclusive negotiations with GTCR around July 15, which means that they signed a Letter of Intent. LOI usually includes an agreed-upon price (or price range) and time frame, during which the company is prohibited from negotiating with other suitors. That time frame could be 30, 60 or 90 days.

    We also got a confirmation from other sources (reuters, daily mail, bloomberg) that there were other suitors and CFN made a bid in mid July, right before ICUI went exclusive with GTCR.

    Last week Dealreporter said that GTCR is no longer involved. That news came out almost exacly 90 days after the exclusivity was reported. Dealreporter also said the sale process hasn't collapsed. If this is true, the exclusivity lapsed last week and the company has started negotiating with others (going back to CFN?).

    GTCR could have walked for many reasons, but yesterday's call suggests that deteriorating fundamentals wasn's one of them - the company printed an OK Q and guidance was lowered only marginally, which is an achievement, given Doc's health and M&A distractions.

    Other reason suggesting the sale process is ongoing is the company still hasn't expanded its sales force (why bother when a strategic buyer already has one) for several Qs now. Also, they haven't hired a search firm to get a new CEO, the succession plan has never been put in place, they haven't bought back any stock with their increasing cash balance, don't plan anything concrete about stock buyback in the future, had an opportunity to deny the sale rumors, but never did.

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    • Thank you for your post.

      I agree. It make a lot of sense especially they don't have a professional firm to hire Doc's replacement.
      They need to move faster, it's good for the company and shareholders both.
      Who is helping ICUI in the process? 90 days is too long.
      I know BAX very well. They have a great management team.

    • Agreed

      Keep in mind, Doc, who is clearly very ill, owns 25% of the company. He is very

      Also, GTCR probably needed Doc to run the company since they are a financial buyer. CFN/HSP/BAX etc. do not need Doc.

      Given the bullish comments about the pipeline, the cheap valuation 9.5x EBITDA, - sale is more likely.

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