Rithm Boosts Bid for Sculptor to $12.70, Wins Dan Och’s Support
Rithm, a private equity firm, has increased its bid for Sculptor, a publicly traded company, to $12.70 per share, and has won the support of Dan Och, the company’s largest shareholder.
Background of Rithm and Sculptor
Rithm is a private equity firm that invests in companies across a variety of industries. It was founded in 2019 and is based in New York City. The firm has a team of experienced professionals who specialize in identifying and investing in companies with strong growth potential.
Sculptor is a publicly traded company that specializes in the development and manufacture of medical devices. It was founded in 2018 and is based in San Francisco. The company has a portfolio of products that are used in a variety of medical procedures, including orthopedic surgery, cardiology, and neurology.
Rithm’s Initial Offer
In October of 2023, Rithm made an initial offer to acquire Sculptor for $11.50 per share. The offer was met with resistance from Dan Och, the company’s largest shareholder, who argued that the offer was too low.
Rithm Increases Offer
In response to Och’s objections, Rithm increased its offer to $12.70 per share. This new offer was accepted by Och, who agreed to support the deal.
Reaction to the Deal
The news of the increased offer and Och’s support for the deal was met with enthusiasm by investors. The stock price of Sculptor rose sharply in response to the news, and analysts expect the company’s share price to continue to rise as the deal moves forward.
Benefits of the Deal
The acquisition of Sculptor by Rithm is expected to bring a number of benefits to both companies. For Rithm, the acquisition will provide access to Sculptor’s portfolio of medical devices, which could be used to expand the firm’s investments in the healthcare sector. For Sculptor, the acquisition will provide access to Rithm’s capital and expertise, which could be used to accelerate the company’s growth.
Timeline of the Deal
The deal is expected to close in the fourth quarter of 2023. Once the deal is finalized, Rithm will become the majority shareholder of Sculptor.
Conclusion
Rithm’s increased offer for Sculptor, along with Dan Och’s support for the deal, has been met with enthusiasm by investors. The acquisition is expected to bring a number of benefits to both companies, and the deal is expected to close in the fourth quarter of 2023.