Luther Medical to Be Bought by New Jersey Firm
<i> From Times Wire Services</i>
Luther Medical Products Inc., a Tustin-based manufacturer of catheter systems, said Wednesday it agreed to be acquired by New Jersey-based Becton Dickinson and Co., a maker of medical supplies, for about $16.3 million, or $4.62 a share.
Luther’s stock surged 36%, or $1.03 a share, to $3.91. Nearly 426,000 shares changed hands, more than 20 times the average daily volume over the last three months.
The proposed merger is subject to approval from a majority of Luther Medical shareholders, among other conditions. The transaction is expected to be completed by January, the companies said.
Luther Medical has posted steadily higher revenue over the last four years but turned its last profit in 1995. It lost $1.8 million over the last three years.
