Shares of wellness company Thorne HealthTech (NASDAQ:THRN) have surged nearly 29% in morning trading today after agreeing to be acquired by L Catterton at $10.20 per share. The latter is a consumer-focused investment firm.
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This implies a transaction value of nearly $680 million, and L Catterton will initiate a tender offer to acquire all of Thorne’s outstanding shares at $10.20 apiece. Thorne’s Board of Directors, and the Independent Special Committee, have unanimously approved the transaction and recommended that all investors in the company tender their shares in the offer, which provides a 94% premium to Thorne’s July 20 closing price.
The acquisition is anticipated to close in the fourth quarter of this year and remains subject to closing conditions and regulatory approvals. Furthermore, upon closing, Thorne will transition into private ownership, and its shares will cease to trade publicly.
With today’s price gains, Thorne shares have now clocked a 126.5% jump over the past year. The stock is currently trading at a price-to-earnings multiple of 20.4.
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