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B2bstores.com (Nasdaq: BTBC) fell 5/32 to 1 3/16 Tuesday after the company agreed to be acquired by medical-supply company Ivax Corp. (AMEX: IVX).
B2b stores, which sells industrial supplies including food-service and janitorial equipment online, will give Ivax 20 million newly issued common shares as the company merges with the Ivax Digagnostics unit.
Miami, Florida-based Ivax said it will discontinue B2bstores.com's Internet operations, and the newly merged company will only be involved in businesses currently handled by Ivax Diagnostics -- developing, manufacturing and marketing diagnostic instrumentation and reagents.
Both companies' boards approved the merger, which now goes to B2bstores.com shareholders for a vote.
The deal gives Ivax "an immediate cash infusion and direct access to the capital markets to accelerate its future growth," said Philip Frost, Ivax chairman and chief executive officer. Ivax Diagnostics will have access to cash and cash equivalents of US$22 million as a result of the transaction, the company said.
According to Frost, shareholders of B2bstores.com will benefit by receiving a stake in the future growth of a proven company in a $19 billion industry.
B2bstores.com has been looking for a buyer or partner since last spring, and has cut back its operations and sold assets in order to save cash while it reviews its options.
B2bstores.com had aimed to "create and market the ultimate Web destination for businesses" seeking to buy supplies online, offering companies a wide range of products -- from computer hardware to napkin dispensers to gift boxes -- and referrals to service providers.
Company shares have taken a beating in recent months, however, trading well
below their 52-week high of 19 1/2.
