The Zacks Analyst Blog Highlights: AngioDynamics, J.P. Morgan, Bank of America, KeyCorp and CR Bard
Zacks
For Immediate Release
Chicago, IL – May 24, 2012 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include AngioDynamics (ANGO), J.P. Morgan (JPM), Bank of America (BAC), KeyCorp (KEY) and CR Bard (BCR).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Wednesday’s Analyst Blog:
Angio Completes Key Acquisition
As a concern which works towards innovation and manufacture of medical devices for minimally invasive procedures, AngioDynamics (ANGO) has completed its previously announced acquisition of Navilyst Medical. The cash and stock deal was worth $355 million on the basis of Navilyst Medical’s closing price of $12.44 on May 21, 2012.
the management believes that the company will increase proficiency and competitiveness on the basis of economies of scale, post-acquisition. The enhanced financial profile before the onset of its next fiscal year has boosted management confidence in achieving the expected financial outlook.
The acquisition is expected to increase Angio’s market share to twice the existing size for the vascular access market. This is because the company will be in a position to offer an enhanced product portfolio to its customers after the acquisition. The addition of the well regarded NAMIC fluid management brand is a major benefit for Angio.
The brand has a strong international presence and will allow the company to leverage sales of its peripheral vascular portfolio. Furthermore, Angio is also scheduled to benefit from the technical knowledge and skill-set inherent at Navilyst Medical.
Despite its worldwide presence, the domestic market contributes 85% of total revenue to Angio. The acquisition will allow the company to focus on international expansion. The deal offers an invaluable opportunity for increased profitability, sales force improvement and generation of significant cash flow for Angio.
The acquisition is also expected to be accretive to Angio’s adjusted earnings per share by at least 8 cents during fiscal 2013. The financial impact of the transaction includes pro forma net sales of about $3.4 billion during fiscal 2013. The expected free cash flow of $50 million will also restore the capital structure of the company and preserve its liquidity.
According to the terms of the agreement stated on January 31, 2012, Angio made payments of $372 million in cash and stock to acquire Navilyst Medical from Avista Capital Partners. Angio was able to finance the transaction by drawing $150 million as acquisition debt and through cash in hand of $97 million.
The acquisition debt of $150 million was loaned from J.P. Morgan (JPM), Bank of America (BAC) and KeyBank National Association, a wing of KeyCorp (KEY). The company also issued about 9.5 million additional shares to meet the transaction terms.
Navilyst Medical is a medical solutions provider with a significant emphasis on the markets for cardiology, radiology and oncology. In 2008, Avista Capital Partners, a private equity firm, acquired the company.
As per the terms of the transaction, investment funds affiliated with Avista Capital Partners now own 9.4 million shares of AngioDynamics Common Stock and have inked a stockholder agreement with the company. Angio has also incorporated two additional positions in its management to accommodate the partners of Avista in order to tap their experience and know-how.
Angio is set to become an industry leader on the back of the aforementioned facts. However, it faces tough competition from industry giant CR Bard (BCR).
Angio currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We also maintain our long-term Neutral recommendation on the stock.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
