Philips Completes Tender Offer to Acquire Respironics

April 15, 2008

Last month, Philips completed the tender offer to acquire all outstanding shares of Respironics.

"Joining with Philips is not only a significant milestone in our company's history, but it's also an opportunity to plan for a promising future as we combine the strengths of two respected global companies," says John Miclot, Respironics' president and CEO. "Through this acquisition, we will have the opportunity to significantly expand and rapidly grow our sleep and respiratory business while continuing to provide world-class products and the level of service that our customers have come to expect."

As the final step of the acquisition process, Philips intends to effect a short-form merger of Philips Merger Sub with and into Respironics. Following the merger, Respironics will become an indirect wholly owned subsidiary of Philips, and Respironics shares will be delisted and will cease to trade on the NASDAQ National Market.

According to Wachovia Capital Markets, Philips is paying a 51 percent premium for the purchase. Michael Watson, senior analyst, said that Respironics was acquired just as its sleep and oxygen businesses had hit their strides.