Hanger, Inc. (NYSE: HNGR) is a provider of orthotic and prosthetic services at its 875 Hanger Clinic locations located around the United States. Shares of the medical service provider are rallying 25% through afternoon trading on Friday, July 22, 2022. Over the past three months, Hanger has seen an average daily volume of 124,270 shares. However, volume of 17.15 million shares or dollar volume of around $316.25 million, has already exchanged hands through afternoon trading Friday.
Shares of Hanger are gaining after the company announced it has entered into a definitive agreement to be acquired by Patient Square Capital, a healthcare-focused investment fund, for $18.75 per share in cash. The offer represents a 29% premium to Hanger’s 30-day volume-weighted average price (VWAP), implying an enterprise value of $1.25 billion.
Patient Square Capital is focused on making patient-focused investments. The firm is backed by a team of seasoned executives with strong backgrounds in health care. Patient Square Capital says its goal is to place investment in companies that can improve patient lives, quality of care and strengthen communities.
Once the transaction is complete, Hanger would delist from the NYSE and become a privately-held company. The transaction is estimated to close during the fourth quarter of 2022, subject to regulatory and customary closing conditions.
Vinit Asar, Hanger’s President and Chief Executive Officer (CEO) said, “I’m very pleased to be announcing this agreement today as the transaction will result in immediate and substantial value creation for our stockholders. This transaction represents a culmination of an extensive review by our Board of Directors of strategic alternatives to provide value to our stockholders and to offer financial flexibility for our company to pursue future growth initiatives. Patient Square Capital recognizes the value of our brand and the quality of our world-class team, and is grounded in similar values that guide our actions. They share the same long-term vision for our company, which makes them an excellent partner for the next phase of our journey.”
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