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%.