Allion to be Acquired

Recently, Allion Healthcare Inc. (ALLI) inked a deal with an affiliate of H.I.G. Capital, LLC, a leading global private investment firm, whereby it agreed to be acquired by the private company. The deal is worth approximately $278 million. The amount is inclusive of the assumption or repayment of about $79 million of indebtedness. The transaction is expected to close in the first quarter of 2010. 

Under the terms of the transaction, Allion shareholders would receive $6.60 per share in cash. This represents a premium of 30.2% over Allion's five-day average closing price before the announcement of the deal. Consequently, this transaction provides substantial financial gains to Allion shareholders. The transaction has been approved by Allion’s Board of Directors. 

Additionally, other shareholders of Allion, including Parallex LLC, who in aggregate hold approximately 41.1 % of the company’s outstanding shares have agreed to vote in favor of the merger. Allion Healthcare is a national provider of specialty pharmacy and disease management services focusing on patients with HIV/AIDS. 

The company sells HIV/AIDS medications, ancillary drugs and nutritional supplies nationwide primarily via mail order under the trade name of MOMS Pharmacy. 

Allion’s products and services include: customized dose-by-dose MOMSPak prescription packaging; direct delivery of medications to patients or their physicians (patients can also pick up their medications at one of the company pharmacies); reimbursement assistance; access to clinical information; compliance monitoring and specialist pharmacist services which include consultation with patients, physicians, and nurses to provide education, counseling, treatment coordination, and clinical information. 

Allion’s other segment, the Specialty Infusion division, focuses on providing specialty biopharmaceutical medications under the name Biomed. Allion Healthcare, headquartered in Melville New York , competes with players like BioScrip Inc. (BIOS - Analyst Report) and Express Scripts Inc. (ESRX - Analyst Report).

Read the full analyst report on ALLI

Read the full analyst report on ESRX

Read the full analyst report on BIOS