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Carter-Wallace bargain sale
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May 8, 2001: 9:13 a.m. ET
Maker of condoms and pregnancy kits accepts below-market offer, calls it fair
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NEW YORK (CNNfn) - Consumer products maker Carter-Wallace Inc. said Tuesday its board has agreed to sell the company for less than the current market price.
Carter-Wallace (CAR: Research, Estimates), which makes Nair hair removal products, Trojan condoms and First Response pregnancy and ovulation test kits, said that under the deal stockholders will receive $20.30 per share, subject to a closing tax adjustment. That's below Monday's closing share price of $22.56, when shares fell 17 cents.
The buyers include Armkel LLC, a partnership of consumer packaged goods company Church & Dwight Co. (CHD: Research, Estimates) and private equity group Kelso & Co., which is spending $739 million for some of its operations. MedPointe Capital Partners LLC., Carlyle Group and Cypress Group will spend $408 million for the remainder of the operations. The company said one transaction will not be closed without the other also being completed.
The company said CPI Development Corp., a private holding company that controls approximately 83 percent of the voting power of Carter-Wallace, supports the transactions, subject to certain limited exceptions. The company did not give a reason for the below-market sale except to say that J.P. Morgan and Houlihan Lokey Howard & Zukin both have rendered written opinions that the $20.30 per share price is fair from a financial point of view to the Carter-Wallace stockholders. 
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