Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Zoll Medical
So what: The all-cash deal values Zoll at $93 per share and represents a 24% premium to its Friday closing price. Asahi Kasei generates more than half of its sales from its chemicals and fibers business, so it's no surprise that management is making the move to diversify and grow its global health-care segment.
Now what: Zoll will become a wholly owned subsidiary of Asahi upon completion of the deal, maintaining its current management team and operations. "This transaction will allow us to build on Zoll's strong U.S. business position and technology leadership, with Zoll forming the cornerstone of our critical care business," Asahi President Taketsugu Fujiwara said. So while it's certainly possible that another suitor for Zoll can come along, holding out for a dramatically better offer seems risky.
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