Revance Therapeutics (NASDAQ:RVNC) stock is on the rise Monday after the biotechnology company announced a merger agreement with private skincare company Crown Laboratories.
Crown Laboratories agreed to acquire Revance Therapeutics for $924 million. The deal is set to close by the end of 2024 and will remove RVNC stock from public trading.
Crown Laboratories will acquire Revance Therapeutics by buying all outstanding shares of RVNC stock. It will pay $6.66 per share in cash for the stock. This represents a roughly 88.7% premium over the stock’s prior closing price.
Jeff Bedard, founder and CEO of Crown Laboratories, said the following about the deal:
“This is a significant step forward in Crown’s vision to become a fully integrated global aesthetics and skincare company, bringing innovative solutions to physicians, patients and consumers in the incredibly dynamic aesthetics and skincare market.”
RVNC Stock Reactions Today
Investors are celebrating the acquisition news with heavy trading of RVNC stock. As of this writing, more than 50 million shares have changed hands, well above the company’s daily average trading volume of about 2 million shares.
RVNC stock is up 86.4% as of Monday afternoon.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Analysis and Breakdown
Revance Therapeutics stock is experiencing a significant increase in value following the announcement of its merger with Crown Laboratories. This acquisition is valued at $924 million and is expected to be finalized by the end of 2024. As a result, RVNC stock will no longer be publicly traded.
The acquisition will see Crown Laboratories purchasing all outstanding shares of RVNC stock at a price of $6.66 per share, representing an 88.7% premium over the stock’s previous closing price. CEO Jeff Bedard highlighted the strategic importance of this deal in expanding Crown Laboratories’ presence in the global aesthetics and skincare market.
Investors have responded positively to this news, with heavy trading activity and an 86.4% increase in RVNC stock price. This development underscores the dynamic nature of the stock market and the potential for significant gains through strategic investments.
Overall, this merger represents a key milestone in Crown Laboratories’ growth strategy and has the potential to create value for shareholders in both companies. It also serves as a reminder of the opportunities present in the biotechnology and skincare sectors for investors seeking growth opportunities in the market.