Friday, 27 May 2011

Mergers & Acquisitions - Week Ending 27/05/11

Setting the pace for what was an eerily quiet week, Monday saw no major deals. It was announced on Tuesday that Steve Madden would purchase rival shoe company Topline for $55 million in an all-cash deal. Steve Madden’s price was boosted 0.5% on this news. Also that day, Nestle moved further into the health care market with the purchase of Prometheus Laboratories, with the purchase being worth approximately $1.1 billion. This had little impact on the Swiss food giant’s share price, however.

Midweek saw Golden Gate Capital buy California Pizza Kitchen for $470 million. The share price of the restaurant chain was up over 10% on this news, reflecting the large premium being offered by the private equity firm. At week’s end it was announced that FIAT would purchase all of the US Government’s shares in Chrysler, making it a 52% majority shareholder overall. The buyer was up just over 1% on this news.

Friday, 20 May 2011

Mergers & Acquisitions - Week Ending 20/05/11

On Monday, SanDisk purchased Pliant Technology for $327 million in an all-cash deal. Shares for the data storage giant were up over 3% on this news. Also that day, TPG Capital purchased magazine group Primedia for $316 million. Primedia’s share price was up around 60% above its previous close, reflecting the premium that the private equity firm was willing to pay for them. Joy Global expanded its mining operations in purchasing Letourneau Technologies from The Rowan Companies for $1.1 billion. Joy Global was up 1% while there was little movement in the seller’s shares. Midweek saw Shire PLC acquire Advanced Biohealing for $750 million. This move was greeted positively by investors, with shares in the buyer up 2%.

On Thursday, it was announced that Deckers Outdoor would buy Sanuk for $120 million, however this had only a superficial effect on shares in the purchasing company. Thursday also saw movement in the food market, with General Mills acquiring a 51% stake in Yoplait for just over $1.1 billion. Shares in the food giant were up 0.15% on this news. Later that day, it was announced that Thermo Fisher will buy Phadia for $3.5 billion. Shares in the scientific manufacturer were up over 4% at market close. Thermo Fisher said that they were looking to increase their presence in global diagnostics. Also in pharmaceuticals, Takeda Pharmaceutical purchased Nycomed for $13.7 billion. Takeda closed up half a percent. Wrapping up what was an extremely eventful day, Toshiba announced that they would takeover Landis and Gyr for $2.3 billion, increasing its energy and infrastructure solutions. This was met with little positive sentiment on the markets, with Toshiba shares down almost 4%.

On Friday, Fila Korea purchased the Golf division of Fortune Brands for $1.23 billion. Investors reacted somewhat negatively, with the share price of the seller down 1.5%; its main activity is now in the liquor market. Also that day, Liberty Media purchased the Barnes and Noble chain for $1 billion. Shares in the bookstore chain were boosted by almost 30% due to the premium being offered to investors by Liberty. It is believed that one of Liberty’s main motives was acquiring the Nook, Barnes and Noble’s e-book reader. The buyer’s shares were down 1.5%.

Friday, 13 May 2011

Mergers & Acquisitions - Week Ending 13/05/11

Setting the tone for what was quite a slow week, Monday brought only two major deals. Biotech giant Alkermes bought the drug delivery end of Elan for around $960Mn and finished the day up almost 5%. This was followed by news that Linn Energy was to purchase $220Mn worth of oil and gas assets in the Southern US. This announcement was met positively from investors, and it closed up 1.5%.Tuesday saw activity in the IT sector as Microsoft purchased Skype for 8.5Bn in cash, saving an estimated $30Mn by not using an advisor on the deal. Investors reacted somewhat optimistically to the deal, and Microsoft finished the day up 1%. Also that day, Apollo Global Management purchased CKx Inc for 511Mn in cash. The buyer was up just over 1% at market’s end.

The activity died down for mid-week, with the only M&A action seeing Industrial manufacturer Idex Corporation purchase CVI Melles from Norwest Equity Partners for $400Mn, as it increases its presence in the optics market. This wasn’t enough to stop Idex’s slump, however; they finished down over 1%.On Thursday, Exelon Corp purchased a natural gas power plant for $305Mn as it looks to strengthen its clean power fleet. It finished up 1.7%. Also in the energy sector, Constellation Energy said it will purchase MXEnergy for $175Mn, expanding its operations in the North American market. This boosted Constellation’s stock price by 2.3%.

At week’s end it was announced that Alcoa would collaborate with the China Development Bank in several aluminium projects in China and further afield. The Asian deal did little to help Alcoa’s price, however; they were down 0.3% at week’s end. Atmos Energy sold its natural gas distribution assets to Algonquin Power & Utilities Corporation for $124Mn in an all-cash deal. This cash injection didn’t have much effect on their equity however, and they ended the week down almost 1%.

Friday, 6 May 2011

Mergers & Acquisitions - Week Ending 06/05/11

Teva Pharmaceuticals got the ball rolling this week with a $6.8Bn deal to purchase Cephalon. Word of this takeover managed to turn around a midday slump for them, they closed up over 3% on Monday. It did little to help Cephalon’s stock however; they closed down 3%. Later that day, it was announced that eco-friendly supply chain regulator BioJet International and Abundant Biofuels, the renewable energy company, would merge, with the latter becoming a fully owned subsidiary of BioJet whilst still retaining the Abundant name.

The midweek saw Applied Materials acquire Varian Semiconductor for $4.9 billion, equivalent to $63 dollars a share, giving them a whopping 55% premium on their previous close. While this didn’t do much for the buyer’s share price (down about 1%), it sent Varian Semiconductor’s price up just over 50% as expected.

On Friday, The Warner Music Group announced that it would be bought out by former board member, Len Blavatnik for a figure in the range of $3.3 billion in an all-cash deal. The Russian billionaire’s holding company Access Industries paid a premium of 34% on the company’s average share price in the last 6 months, with this news boosting the record label’s stock price by 3.5% at weeks end.