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.