After several decades as a publicly-traded company on the New York Stock Exchange, century-old prosthetics maker Hanger will go private in a $1.25 billion acquisition.
Patient Square Capital, a Silicon Valley healthcare investment firm, has agreed to pay $18.75 per share in cash for the company.
Hanger was founded in 1861 by an injured Civil War soldier and became a major manufacturer of orthotic and prosthetic devices. In the 1990s, it went public and expanded into healthcare services, owning a line of nationwide rehabilitation facilities that now number 900.
In June, Patient Square Capital was part of an $890 million acquisition of biopharma developer Radius Health. In May, it started a $300 million startup incubator focused on therapeutics.
Before the deal was announced, Hanger’s shares were valued at about $14.75. In 2021, the company reported $1.12 billion in revenues, up from $1 billion in 2020. For 2022, Hanger said it expects revenues to hit between $1.19 billion and $1.22 billion. The company’s rehab facilities account for most of its earnings, taking in more than $943 million in 2021 compared to the $177 million in net revenues from products and services.
“This transaction represents a culmination of an extensive review by our board of directors of strategic alternatives to provide value to our stockholders and to offer financial flexibility for our company to pursue future growth initiatives,” Chief Executive Officer Vinit Asar said in a statement.
The deal is expected to close at the end of 2022. Asar will remain in his position, which he has held since 2012, and the company will continue to be headquartered in Austin.