Friday, 26 August 2011

Mergers & Acquisitions - Week Ending 26/08/11


On Tuesday, H&R Block sold RSM McGladrey; its accounting and consulting unit, to its working partner McGladrey & Pullen for $610 million. The tax service provider said this sale would help it refocus on increasing market share and margins in its core business. It was up 7.4% at the bell. The midweek saw Unilever sell two major hair care brands to Brynwood Partners for an undisclosed amount; in a deal struck to satisfy the US Justice Department’s conditions on its $3.7 billion acquisition of Alberto Culver. The private equity firm will take control of the Rave brand as well as Alberto VO5’s US and Puerto Rican units. The consumer goods giant was down 1.2%.

The following day, Verizon acquired CloudSwitch; a provider of cloud software, for an undisclosed fee. The communications firm plans to combine the cloud software provider with its IT subsidiary Terremark. They finished the day 2% lower. Also that day, Compass Diversified Holdings purchased CamelBak; a hydration backpack manufacturer, for $258 million. The buyer dropped 1.7%. On Friday, Japanese telecoms company Softbank said it would repay CitiBank’s $1.1 billion loan using its 4% stake in Yahoo as per a 2004 agreement. Despite making a profit due to Yahoo’s depreciation in recent years, the seller fell 0.5%. CitiGroup was relatively unaffected by the news.