Wilson Greatbatch Technologies is planning to sell more stock to raise money for acquisitions and to allow its biggest shareholder to cash in on a portion of its investment.
Wilson Greatbatch, less than nine months after going public, said Tuesday it plans to sell 6 million shares of stock in a secondary offering late next month.
The Clarence-based maker of medical power sources also said it expects its second-quarter profits to come in on the high end of analyst forecasts at 13 cents per share, compared with a loss of 3 cents per share a year ago. The company expects its sales to rise by 28 percent to more than $30 million, compared with $23.4 million a year earlier.
Wilson Greatbatch also said it is comfortable with analyst forecasts that the company will earn 12 cents per share during the third quarter and 16 cents per share during the fourth.
With the stock offering, most of the shares would be sold by Wilson Greatbatch's biggest shareholder, DLJ Merchant Banking Partners II, which plans to sell 4 million of their 10.2 million shares.
DLJ, which bankrolled a 1997 leveraged buyout of the company, now owns 54.7 percent of Wilson Greatbatch's stock and the stock sale
would give it a way to cash in on some of its investment in the company. If the demand for Wilson Greatbatch's stock is high, DLJ could sell another 900,000 shares of its stake in the company, which would cut its ownership interest in Wilson Greatbatch to a little more than 25 percent.
Wilson Greatbatch also plans to sell 2 million new shares through the offering, which would raise $57.8 million in new capital for the company, based on Tuesday's closing price of $28.96 per share. How much the company actually raises through the offering will depend on the price of the shares at the time of the sale.
Ernest J. Norman, a company spokesman, said Wilson Greatbatch plans to use the money it raises through the offering to help pay for acquisitions and other corporate purposes. The company is planning a road show, where top company officials meet with potential investors, for mid-July, with the sale taking place toward the end of the month, he said.
The company announced the plans for the stock sale at the same time it disclosed that it paid $49 million to buy the Sierra division of Maxwell Technologies, a Nevada business that makes electromagnetic interference filtering products.