Sverica International to acquire CFWH

Oct 7 2010

The Center for Wound Healing, Inc. (OTCBB: CFWH), a leading manager of comprehensive wound care treatment centers that offer wound care and hyperbaric oxygen therapy, today announced that it has entered into a definitive agreement to be acquired by Sverica International, a leading private equity firm, for approximately $41 million.

Under terms of the agreement, which has been unanimously approved by CFWH's board of directors, CFWH shareholders will receive $0.60 in cash, subject to certain adjustments, for each share of CFWH common stock they hold, representing a 140% premium over the $0.25 closing price on October 5, 2010. The cash amount that CFWH shareholders will be entitled to receive under the agreement, giving effect to all possible adjustments, will be at least $0.579 per share.

Completion of the transaction is subject to customary closing conditions, including CFWH shareholder approval, and the receipt by Sverica of financing for the transaction in accordance with financing commitments received. Holders of approximately 68% of CFWH's outstanding common stock have executed a voting agreement under which they have agreed to vote their shares in favor of approval of the proposed acquisition.

The transaction is expected to be completed in the fourth quarter of 2010, subject to customary closing conditions.

Gleacher & Company Securities, Inc. and Butzel Long, a professional corporation, acted as financial and legal advisors, respectively, to The Center for Wound Healing, Inc.'s Board of Directors.