It’s been a big few days for Canadian merger and acquisition (M&A) news, as we have one more bit to bring in. And it is a doozy, too; Andlauer Healthcare Group (TSE:AND) entered an agreement with United Parcel Service (UPS) to be purchased for $1.6 billion. Investors were oddly displeased with this, and sent shares down fractionally in Thursday morning’s trading.
UPS was looking for a way to give its healthcare business—because yes, it does have a healthcare business—a boost, and Andlauer looked like a great way to get there. In fact, thanks to Andlauer, UPS now has a way to offer “cold-chain solutions” as well as “precision logistics.” “Cold-chain solutions” are actually about what they sound like; solutions for shipping perishable goods that need to be kept cold, like many prescription medications.
UPS will pay C$55 per share for Andlauer, which represents roughly a 31% premium over the closing cost from Wednesday’s trading, reports noted. After the sale, Andlauer will remain headquartered in Vaughan, Ontario, and “subordinate voting shares” will be de-listed after the deal closes.
They’re Going to Miss All the Growth
In a move that proves that, sometimes, you never can tell, a report from just a couple weeks ago detailed how several insiders were getting rid of Andlauer stock ahead of the deal with UPS. One of the biggest sales came from Ronald Skelton, listed as a “senior officer,” who sold C$3.9 million worth of the stock back when shares were running C$43.08. That looks like a good deal, even right now as shares sell at C$41.96.
But with the UPS deal likely to push shares up to C$55, it seems like Skelton missed out on a hefty upswing. Skelton had even sold C$1.6 million in shares in just the last three months, prompting at least some to wonder if he even knew about the possible UPS deal.
Is Andlauer Healthcare Group Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on TSE:AND stock based on two Buys and three Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 2.08% rally in its share price over the past year, the average TSE:AND price target of C$48.20 per share implies 14.88% upside potential.
