Allion selling to private firm for $199 million

Allion Healthcare being acquired by private firm for $199 million in cash, $79 million in debt

• On 10:38 am EDT, Monday October 19, 2009

MELVILLE, N.Y. (AP) -- Allion Healthcare Inc., which provides pharmacy management services, said late Sunday it is being bought by an affiliate of the private investment firm H.I.G. Capital LLC for about $199 million, plus $79 million in assumed debt.

Under the deal, shareholders will receive $6.60 per share in cash, marking a 21 percent premium to Friday's closing price of $5.44.

The stock soared $1.03, or 18.9 percent, to $6.47 in morning trading Monday.

Allion said it will become a private entity after the buyout closes, which is anticipated in the first quarter of 2010.

Raymond James & Associates Inc. served as financial advisor to the Allion's board of directors. Alston & Bird LLP is serving as legal counsel to the company.