Mergers & Acquisitions - Week Ending 06/22/12
The week’s first deal came on Tuesday, when KKR acquired
Prisma Capital Partners, a fund of funds, for an undisclosed amount. It is
believed that the private equity firm is looking to move into asset management
through deals such as this. KKR gained 6.9% on the news. Also that day, pharmacy
chain Walgreen purchased a 45 percent stake in British rival Alliance Boots
for $6.7 billion. The move, which will create one of the world’s largest
drugstore groups, is the latest in a flurry of acquisitions by US companies looking
to capitalise on cheap European assets. The move was met with negative
sentiment on the markets, with the buyer losing 5.9%.
On Thursday, the Cabot Corporation absorbed carbon
supplier Norit for $1.1 billion. Securing this supply is part of their plan to
refocus on higher margin units. The chemicals company fell 3.9%. The next
day saw private equity group Bain Capital buy a 50 percent stake in Jupiter
Shop Channel Company from conglomerate Sumitomo for over $1 billion. The
private equity group is likely to have been attracted to the retail unit’s
strong growth and wide reach in Japan. The seller decreased by 2.3%. Following
a smaller increase the week before, telecoms giant América Movíl grew its
stake in KPN to almost 21 percent for $1.59 billion. The Dutch firm have been
trying to fend off their South American rival, citing a low offer, but to little
avail. The bidder was up 0.6% as the target dropped 4.4%.