Webster agrees Lifecore buyout with cash and contingent payments

Lifecore Biomedical ($LFCR) has agreed to be acquired by a Webster Equity Partners affiliate. Common shareholders would receive $6.28 in cash per share at closing, a 49.5% premium to the preceding trading day’s close, plus a non-tradable contingent value right. The company described a potential transaction value of up to $663.7 million, assuming all relevant financial milestones are achieved.

The contingent component could distribute up to $160 million in aggregate, but depends on future revenue and EBITDA targets. The illustrative maximum of $9.67 per common-equivalent share is therefore not guaranteed consideration. The agreement includes a 30-day go-shop period and requires shareholder approval, regulatory clearances and other conditions. Closing is expected near year-end; Lifecore remains publicly traded until a transaction is completed.

Sources:

• Lifecore company release — GlobeNewswire