Tampa Bay-based Lincare Holdings Inc. will soon be acquired by Germany's Linde AG. This news has sent investor's share skyrocketing since the announcement earlier this week.
The industrial gas manufacturer based in Germany has plans to acquire the Tampa Bay respiratory care company for $4.6 billion. The deal is anticipated to close in the third quarter. Lincare is one of the Bay area's biggest public companies, employing 11,000 people.
Linde AG has submitted a cash offer of $41.50 per share. Institutional investors stand to cash in on hundreds of millions of dollars and company executives will also see returns in the millions. FMR LLC will garner nearly $582 million, JPMorgan $362, BlackRock $265, Glenview Capital Management $228 and Wellington Management just over $225.
John Byrnes, chairman and CEO of the Lincare will get nearly $140 million from the deal. Paul Gabos, the company chief financial officer, will get less than half of that at $65 million. The president and COO of Lincare, Shawn Schabel, will receive $96 million from the deal. Members of the board of directors will get anywhere from $2 - $12 million as a result of the cash transaction.
The payouts come as a result of Linde's aggressive business strategies in recent years. The company acquired European home health company Air Products early in 2012 for about $750 million. Linde specializes in medical gases in hospitals. It also focuses on services to patients who suffer from chronic respiratory problems. The acquisition of Lincare will further the reach of Linde's hospital and healthcare arena settings.
Industry analysts believe the merger should go smoothly and without incident.
"The acquisition of Lincare represents a natural extension of the company's home health strategy," wrote William Zellweger and Chris Rigg on industry site SIG.com.
The news of the merger is a big outside of the Tampa Bay area. The last time a significant merger took place was back in 2008. At that time, Blackstone Group acquired Apria for $1.6 billion.
Lincare is most often associated with respiratory care, but the company also offers pulmonary rehabilitation, enteral therapy and home infusion. The company is headquartered in Clearwater but has 1,100 locations throughout the country in 48 states. The company was founded in 1965 as an oxygen systems business and has expanded to include services like nebulizer, sleep and ventilator therapy.