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Arrow International (NASDAQ: ARRO) made an announcement today that almost always thrills investors. That is, the company has formed a special committee of the board of directors to "explore and evaluate strategic alternatives aimed at enhancing shareholder value."Yes, the company is thinking of selling out. And, to this end, Arrow has hired the M&A advisory firm, Lazard Ltd. (NYSE: LAZ).
Something else: board member Richard Niner resigned. In his farewell letter, he said he was disappointed in the decision to sell the company (you can check out the letter at the SEC website – it's kind of juicy, referring to "clandestine" moves by other board members).
As for Arrow, the company develops disposable catheters. In the most recent quarter, sales were $123.4 million and net income was $14.4 million. There is $172.6 million in the bank.
Wall Street is taking things seriously. On the news today, Arrow's stock price surged 19.24% to $39.16.
Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.
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