Seeking Alpha
Newsletter author
Profile| Send Message|
( followers)  

The activity on the Merger and Acquisition front increased once again last week with seven new deals announced and four deals closing. We are also happy to report the beta launch of a new tool that will let you see the spreads on deals in almost real time. This tool automatically calculates the profits and annualized profits for all cash, cash plus stock and all stock deals during trading hours. It will also calculate the profits for deals that have special collars like the acquisition of WuXi PharmaTech (WX) by Charles River Labs (NYSE:CRL) that was discussed in this blog entry. Please take our new Merger Arbitrage tool for a test drive and let us know your thoughts on how we could improve it.

The deals that closed last week include the acquisition of RiskMetrics Group (RISK) by MSCI on June 02, 2010, the acquisition of Dialysis Corporation of America (DCAI) by U.S. Renal Care on June 02, 2010, the acquisition of CNX Gas (CXG) by Consol Energy on June 01, 2010 and the acquisition of Protection One (PONE) by GTCR on June 04, 2010

The Seven New Deals include the acquisition of ev3 (EVVV) by Covidien plc (NYSE:COV) for $22.5 per share in cash, the acquisition of SonicWall (SNWL) by an investor group led by private equity firm Thoma Bravo LLC for $11.5 per share in cash, the acquisition of DivX (DIVX) by Sonic Solutions (SNIC) for $3.75 in cash and 0.514 shares of Sonic Solutions common stock for each share of DivX, the acquisition of PET DRx Corp (VETS) by VCA Antech Inc (NASDAQ:WOOF) for $0.34 to $0.36 per share in cash and the acquisition of OMNI Energy Services (OMNI) by Wellspring Capital Management for $2.75 per share in cash.

The other two new deals include Mediacom Communications Corporation (NASDAQ:MCCC), which is being taken private by it’s CEO Rocco Commisso for $6 per share in cash and the acquisition of Gerdau Ameristeel Corporation (GNA) by Gerdau (NYSE:GGB) for $11 per share in cash. The closing date for these two deals has not been mentioned so far.

We have also updated the information for the acquisition of car rental company Dollar Thrifty (NYSE:DTG) by Hertz.

Symbol Announced
Date
Acquiring
Company
Closing
Value
Closing
Price
Last
Price
Closing
Date
Profit Annu.
Profit
AYE 02/11/2010 FirstEnergy $8.5 billion $23.90 $20.74 03/31/2011 15.23% 18.72%
Details of Allegheny Energy, Inc.
Expected to close by March 31, 2011 for a closing value $8.5bn. It is a stock based transaction @ 0.667 share of FE
SSE 02/23/2010 Naugatuck Valley Financial Corp $19.5 million $7.25 $6.30 08/16/2010 15.08% 78.63%
Details of Southern Connecticut Bancorp In
Expected to close by the third calendar quarter of 2010, for a closing value of $19.5mn @ $7.25/share. The Cash/stock election is subject to proration
ATBC 05/10/2010 Jacksonville Bancorp N/A $2.95 $2.56 09/30/2010 15.08% 47.86%
Details of Atlantic BancGroup Inc
Expected to close in the third quarter of 2010. If the merger is completed, Atlantic BancGroup shareholders will receive 0.2 shares of Jacksonville Bancorp common stock for each share of Atlantic BancGroup common stock held, plus up to approximately $0.65 per share in cash, subject to the qualifying sale of certain Atlantic BancGroup assets.
WX 04/26/2010 Charles River Laboratories $1.6 billion $20.28 $18.10 12/31/2010 12.04% 21.23%
Details of Wuxi Pharmatech (Cayman) Inc.
Expected to close by the end of the year for a closing values of $1.6bn. It is a cash and stock transaction in which WuXi PharmaTech ADS holders will receive $11.25 in cash and $10.00 of Charles River common stock determined by an exchange ratio. This exchange ratio will be determined by dividing $10.00 by the weighted average Charles River common stock closing price as reported on the New York Stock Exchange for the 20-day trading period ending on the second business day prior to closing (Charles River Average Price). However, if the Charles River Average Price is equal to or greater than $43.1726, then the exchange ratio will be fixed at 0.2316, and if the Charles River Average Price is equal to or less than $37.1486, then the exchange ratio will be fixed at 0.2692.
PINN 02/24/2010 Investor Group lead by Scotia Waterous (NYSE:USA) $11 million $0.34 $0.31 06/30/2010 9.68% 153.62%
Details of Pinnacle Gas Resources, Inc.
Expected to close by the second quarter of 2010 for a closing value of $11mn. It is a cash deal @ $0.34 per share
Q 04/22/2010 Century Link $10.6 billion $5.65 $5.24 04/21/2011 7.78% 8.93%
Details of Qwest Communications Internatio
Expected to close in the first half of 2011for a value of $10.6bn. Under the terms of the agreement, Qwest shareholders will receive 0.1664 CenturyLink shares for each share of Qwest common stock they own at closing.
ME 04/15/2010 Apache $2.7 billion $23.15 $21.56 09/30/2010 7.36% 23.36%
Details of Mariner Energy, Inc. Mariner En
Expected to close by the third quarter of 2010 for a value of $2.7bn. Under the cash and stock deal, Mariner stockholders will receive cash of $7.80 and 0.17043 of a share of Apache common stock in exchange for each share of Mariner common stock.
SWWC 03/03/2010 Institutional Investors $275 million $11.00 $10.25 03/31/2011 7.32% 9.00%
Details of Southwest Water Company
Expected to close by 3/31/2011 for a closing value of $275 million. It is a cash deal @ $11.00 per share
EMMS 05/25/2010 JS Acquisition and Alden Global Capital $3 billion $2.40 $2.29 09/30/2010 4.80% 15.23%
Details of Emmis Communications Corporation
Expected to close in the third quarter of 2010 for a closing value of over $3bn. On the completion of the merger, Emmis Communications shareholders will receive $2.40 per share in cash.
DIVX 06/02/2010 Sonic Solutions $323 million $9.01 $8.63 09/30/2010 4.38% 13.90%
Details of DivX
Expected to close by the third quarter of 2010 for a cosing value of $323mn. On the completion of the merger, DivX shareholders will receive $3.75 in cash and 0.514 shares of Sonic Solutions common stock for each share of DivX they hold.
VTIV 05/06/2010 Thomas H. Lee Partners $1.1 billion $26.00 $24.96 09/30/2010 4.17% 13.24%
Details of inVentiv Health, Inc.
Expected to close by the third quarter of 2010 for a closing value of approx $1.1bn. Under the terms of the agreement, which has been approved by inVentiv’s board of directors, inVentiv shareholders will receive $26.00 in cash for each share of VTIV common stock they hold.
BNE 02/24/2010 RR Donnelley $481 million $11.50 $11.04 09/30/2010 4.17% 13.24%
Details of Bowne & Co., Inc. Common Stock
Expected to close by the second half of 2010 for a closing value of $481mn. It is a cash deal @ $11.50 per share
PRPX 02/17/2010 L.B. Foster Co. $112 million $11.71 $11.25 06/30/2010 4.09% 64.91%
Details of Portec Rail Products, Inc.
Expected to close by the end of June 2010 for a closing value of $112mn. The cash deal is @ $11.71 per share
PSYS 05/17/2010 Universal Health $3.1 billion $33.75 $32.50 12/31/2010 3.85% 6.79%
Details of Psychiatric Solutions, Inc.
Expected to close by the fourth quarter of 2010 for a closing value of $3.1bn. On the completion of the merger, Psychiatric Solutions shareholders will receive $33.75 per share in cash.
SII 02/19/2010 Schlumberger $7.5 billion $39.56 $38.21 09/30/2010 3.53% 11.20%
Details of Smith International, Inc. Commo
Expected to close by the second half of 2010. It is a stock-for-stock merger @ 0.6966 shares of SLB / $42.96 per SII share
GLG 05/17/2010 Man Group $1.6 billion $4.50 $4.35 09/30/2010 3.45% 10.95%
Details of GLG Partners Inc Common Stock
Expected to close by the third quarter of 2010 for a closing value of approximately $1.6bn. On the completion of the merger, GLG Partners shareholders will receive $4.50 per share in cash.
RCNI 03/05/2010 ABRY Partners $536 million $15.00 $14.50 09/30/2010 3.45% 10.95%
Details of RCN Corp.
Expected to close by the Second half 2010 for a closing value of $536mn. It is a cash deal @ $15.00 per share
MAM 03/12/2010 Emera Inc $75.7 million $45.00 $43.50 12/31/2010 3.45% 6.08%
Details of Maine & Maritimes Corporation C
Expected to close by the end of 2010 for a closing value of $75.7 million. The cash deal is @ $45 per share
STBK 03/18/2010 Roma Financial Corp $14.7 million $2.52 $2.44 08/16/2010 3.28% 17.10%
Details of Sterling Banks, Inc.
Expected to close in the third quarter of 2010 for a closing value of $14.7 million. The cash deal is @ $2.52 per share
IDC 05/04/2010 Silver Lake & Warburg Pincus $3.4 billion $33.86 $32.86 09/30/2010 3.04% 9.65%
Details of Interactive Data Corporation Co
Expected to close by the third quarter of 2010 for a cosing value of $3.4bn. According to the deal, Interactive Data shareholders will receive $33.86 per share in cash.
VETS 06/02/2010 VCA Antech Inc $41.25 million $0.34 $0.33 09/30/2010 3.03% 9.62%
Details of PET DRx Corp
Expected to close by the third quarter of 2010 for a closing value of $41.25mn. On the completion of the mergerPet DRx shareholders are expected to receive $0.34 – $0.36 per share in cash.
EFJI 05/17/2010 Francisco Partners $1.05 $1.02 09/30/2010 2.94% 9.33%
Details of EFJohnson Technologies, Inc
Expected to close by the third quarter of 2010. On the completion of the merger, EF Johnson Technologies shareholders will receive $1.05 per share in cash.
DCP 04/12/2010 Cerberus Capital Management $1.5 billion $17.55 $17.12 11/15/2010 2.51% 5.69%
Details of Dyncorp International Inc. Dync
Expected to close in the third or fourth quarter of 2010 for a value of $1.5bn. DynCorp International
ORCD 03/16/2010 eMusic $12.77 million $2.05 $2.00 08/16/2010 2.50% 13.04%
Details of The Orchard Enterprises, Inc
Expected to close by the third quarter of 2010 for $12.7 million @ $2.05 per share.
HTRN 05/05/2010 Endo Pharmaceuticals $223 million $4.85 $4.74 07/31/2010 2.32% 15.68%
Details of HealthTronics, Inc.
Expected to close by July 31, 2010 for a closing value of $223mn. The deal is @ $4.85 cash per HealthTronics share
OMNI 06/04/2010 Wellspring Capital Management $122 million $2.75 $2.69 11/15/2010 2.23% 5.06%
Details of OMNI Energy Services Corp.
Expected to close in the second half of 2010 for a closing value of $122mn. On the completion of the merger OMNI Energy Services shareholders will receive $2.75 per share in cash.
VRAD 05/17/2010 Providence Equity $294 million $17.25 $16.88 09/30/2010 2.19% 6.95%
Details of Virtual Radiologic Corporation
Expected to close by the third quarter of 2010 for a closing value of $294mn. On the completion of the merger, Virtual Radiologic shareholders will receive $17.25 per share in cash.
BSMD 05/13/2010 Merit Medical Systems $96 million $4.38 $4.29 09/30/2010 2.10% 6.67%
Details of BioSphere Medical, Inc.
Expected to close in the third quarter of 2010 for a closing value of $96mn.If the merger is completed, BioSphere Medical shareholders will receive $4.38 per share in cash.
PFWD 04/16/2010 Oracle Corp. $685 million $17.00 $16.65 06/30/2010 2.10% 33.33%
Details of Phase Forward Incorporated
Expected to close in the middle of the year 2010 for a value of $685mn. Oracle is paying $17 per share in cash.
ATSI 04/29/2010 Medtronic $350 million $4.00 $3.93 09/30/2010 1.78% 5.65%
Details of ATS Medical, Inc.
Expected to close by September 30 for a value of $350mn. Medtronic is offering ATS Medical $4 per share
WEL 04/09/2010 Halliburton Company $240 million $3.00 $2.95 09/30/2010 1.69% 5.36%
Details of Boots and Coots, Inc. Common St
Expected to close in the summer of 2010 for a value of $240mn. The $3 cash & stock deal consists of $1.73 in cash and $1.27 in Halliburton stock.
ODSY 05/24/2010 Gentiva Health Services $1.0 billion $27.00 $26.55 09/30/2010 1.69% 5.36%
Details of Odyssey Healthcare, Inc.
Expected to close in the third quarter of 2010 for a closing value of $1.0bn. On the completion of the merger, Odyssey HealthCare shareholders will receive $27.00 per share in cash.
SNWL 06/03/2010 investor group led by private equity firm Thoma Bravo LLC $636 million $11.50 $11.31 12/31/2010 1.68% 2.96%
Details of SonicWall
Expected to close by the end of the year for a closing value of $636mn.On the completion of the merger SonicWall shareholders will get $11.50 per share in cash.
WMZ 05/24/2010 Williams Partners L.P. $29.71 $29.27 09/30/2010 1.52% 4.82%
Details of Williams Pipeline Partners LP C
Expected to close in the third quarter of 2010. On the completion of the merger, Williams Pipeline Partners shareholders will receive 0.7584 shares of Williams Partners common stock per share held.
MIR 04/12/2010 RRI Energy In. $1.6 billion $12.76 $12.57 12/31/2010 1.49% 2.63%
Details of Mirant Corp Common Stock
Expected to close by the end of the year 2010 for a value of $1.6bn. Mirant Corp. will combine with RRI Energy Inc. in a stock-deal to form GenOn Energy. Mirant stockholders will get about 2.84 RRI common shares for each Mirant share they own.
CKR 03/01/2010 Apollo Management VII $694 million $12.55 $12.38 06/30/2010 1.37% 21.74%
Details of CKE Restaurants, Inc. Common St
Expected to close by June 30 for a closing value of $694 mn.CKE scrapped the THL deal and accepted Apollo’s takeover bid @ $12.55 per share.
CAL 05/03/2010 United $1.2 billion $22.94 $22.64 12/31/2010 1.34% 2.36%
Details of Continental Airlines, Inc. Comm
Expected to close by the end of 2010 for a closing value of approximately $1.2bn. In the merger, Continental shareholders will receive 1.05 shares of United common stock for each Continental common share they own.
SENO 05/05/2010 Bard $200 million $11.00 $10.86 09/30/2010 1.29% 4.09%
Details of SenoRx, Inc.
Expected to close by the third quarter of 2010 for a closing value of $200mn. The deal is @ $11.00 per share in cash.
DBTK 05/17/2010 Vision Solutions $242 million $10.55 $10.42 09/30/2010 1.25% 3.97%
Details of Double-Take Software, Inc.
Expected to close by the third quarter of 2010 for a closing value of $242mn. On the completion of the merger, Double-Take Software shareholders will receive $10.55 per share in cash.
CRN 04/19/2010 GeoGroup $685 million $26.86 $26.56 09/30/2010 1.12% 3.55%
Details of Cornell Corrections, Inc. Commo
Expected to close in the third quarter of 2010 at an estimated enterprise value of $685 million based on the closing prices of both companies
CPII 05/10/2010 Comtech $472.3 million $15.93 $15.76 09/30/2010 1.09% 3.46%
Details of CPI International, Inc.
Expected to close in the third quarter of 2010 for a closing alue of $472.3mn. If the merger is completed, CPI International shareholders will receive a combination of $9.00 in cash plus a fraction of Comtech common stock equal to $8.10 divided by the average closing price of Comtech common stock over a specified period of time prior to closing, provided that the fraction shall not be greater than 0.2382 nor less than 0.2132.
EVVV 06/01/2010 Covidien plc $2.6 billion $22.50 $22.26 07/31/2010 1.08% 7.30%
Details of ev3
Expected to close by July 31, 2010 for a closing value of $2.6bn. Covidien will pay $22.50 in cash for each ev3 share.
CYBS 04/21/2010 Visa Inc. $2.0 billion $26.00 $25.74 09/30/2010 1.01% 3.21%
Details of CyberSource Corporation
Expected to close in Visa’s Fourth Fiscal Quarter ending in September for a closing value of $2bn. The closing price for the cash deal is at a price of $26.00 per share.
SY 05/12/2010 SAP $5.8 billion $65.00 $64.40 09/30/2010 0.93% 2.95%
Details of Sybase, Inc. Common Stock
Expected to close in the third quarter of 2010 for a closing value of $5.8bn. If the merger is completed, Sybase shareholders will receive $65.00 per share in cash.
TWPG 04/26/2010 Stifel Financial $300 million $6.67 $6.61 06/30/2010 0.87% 13.81%
Details of Thomas Weisel Partners Group, I
Expected to close on June 30 for a closing values of $300mn. Stifel plans to acquire all of the outstanding shares of Thomas Weisel Partners common stock in a stock-for-stock merger using a fixed exchange ratio of 0.1364 shares of Stifel common stock for each share of Thomas Weisel Partners common stock.
SXE 05/07/2010 CGI Group $904 million $37.50 $37.19 09/30/2010 0.83% 2.63%
Details of Stanley, Inc. Common Stock
Expected to close during the fall of 2010 for a closing value of $904mn. CGI will pay shareholders $37.50 for each share of Stanley.
IUSA 03/08/2010 CCMP $460 million $8.00 $7.94 06/30/2010 0.76% 12.06%
Details of infoGROUP Inc.
Expected to close by this Summer for a value of $460 million @ $8.00 per share
RBI 03/15/2010 affiliate of Oncap Management Partners L.P. $13.55 $13.45 08/16/2010 0.74% 3.86%
Details of Sport Supply Group, Inc
Expected to close in the second or third quarter of 2010. ONCAP has the unilateral option to terminate the merger agreement by paying to Sport Supply Group a termination fee of either $6,000,000 or $10,000,000, depending on whether financing is available to ONCAP. It is a cash deal @ $13.55
BELM 03/29/2010 Avnet $252 million $7.00 $6.95 06/30/2010 0.72% 11.43%
Details of Bell Microproducts Inc.
Expected to close in two to four months for a closing value of $252mn and also assuming $342 million in debt for the company as part of the transaction, bringing the total value of the deal up to $594 million.Avnet is paying $7 a share for San Jose-based Bell Microproducts Inc.
ARD 04/04/2010 SandRidge Energy Inc. $1.6 billion $36.04 $35.80 09/30/2010 0.66% 2.09%
Details of Arena Resources Inc Common Stoc
Expected to close during the second or third quarter of 2010 for a value of $1.6bn. The stock-cash merger is @ 4.7771 shares of SandRidge common stock and $2.50 in cash for each share of Arena common stock.
NADX 04/05/2010 GDC Holdings Inc. $100 million $17.00 $16.91 06/30/2010 0.53% 8.41%
Details of National Dentex Corporation
Expected to close at the end of the quarter ending June 30 for a value of $100mn. The deal is @ $17.00 per share in cash.
MIL 03/01/2010 Merck $6 billion $107.00 $106.49 09/30/2010 0.48% 1.52%
Details of Millipore Corporation Common St
Expected to close by the second half of 2010 for a closing value of $6bn. It is a cash deal @ $107 per share
BWY 03/29/2010 Madison Dearborn Partners, LLC ("MDP") $915 million $20.00 $19.94 08/16/2010 0.30% 1.56%
Details of Bway Holding Company
Expected to close in the second or third quarter of 2010 for a value of $915 million.Under the agreement, BWAY shareholders will receive $20.00 cash for each share of BWAY common stock they own.
NGA 04/01/2010 AZZ Inc. $125.6 million $7.50 $7.49 08/31/2010 0.13% 0.56%
Details of North American Galvanizing & Co
Expected to close by the end of AZZ’s fiscal second quarter, Aug. 31for a value of $125.6 million. AZZ plans a cash tender offer for NAGC of $7.50 per share
TSFG 05/17/2010 TD Bank Financial Group $61 million $0.28 $0.28 09/30/2010 0.00% 0.00%
Details of The South Financial Group Inc.
Expected to close by the third quarter of 2010 for a closing value of $61mn. On the completion of the merger, The South Financial Group shareholders will receive either $0.28 in cash or 0.004 shares of TD Bank Financial Group common stock per The South Financial Group common share held.
OSIP 05/17/2010 Astellas Pharma $3.5 billion $57.50 $57.50 06/30/2010 0.00% 0.00%
Details of OSI Pharmaceuticals Inc.
Expected to close by the second quarter of 2010 for a closing value of $3.5bn. On the completion of the merger, OSI Pharmaceuticals shareholders will receive $57.50 per share in cash.
PALM 04/28/2010 Hewlett – Packard $1.2 billion $5.70 $5.70 07/31/2010 0.00% 0.00%
Details of Palm, Inc.
Expected to close by July 31, 2010 for a closing value of $1.2bn. It is a cash deal @ $5.7 per share.
GNA 06/02/2010 Gerdau $1.7 billion $11.00 $11.02 N/A -0.18% 0.00%
Details of Gerdau Ameristeel Corporation
MCCC 06/01/2010 Chief Executive Rocco Commisso $590 million $6.00 $6.25 N/A -4.00% 0.00%
Details of Mediacom Communications Corporation
DTG 04/26/2010 Hertz $1.3 billion $39.31 $44.90 12/31/2010 -12.46% -21.97%
Details of Dollar Thrifty Automotive Group
Expected to close by the end of the year for a value of $1.3 billion. The transaction values Dollar Thrifty stock at approximately $41.00 per share. the $41.00 per share purchase price is comprised of 80% cash consideration and 20% stock consideration. The cash portion will be paid in two components; (1) a $200 million special cash dividend representing approximately $6.88 per share, to be paid by Dollar Thrifty immediately prior to the transaction closing and (2) $25.92 per share to be paid by Hertz at the closing. The stock is at a fixed exchange ratio of 0.6366 per share, based upon a Hertz common stock closing price of $12.88 per share on April 23, 2010.
SMMX 04/05/2010 Accelrys Inc. $186 million $5.19 $6.32 06/30/2010 -17.91% -284.22%
Details of Symyx Technologies, Inc.
Expected to be completed by the end of June 2010 for a value for $186mn. It is an all-stock merger where Symyx shareholders will receive 0.7802 shares of Accelrys common stock for each share of Symyx.
CCE 02/25/2010 The Coca-Cola Company $12.3 billion $0.00 $25.82 10/01/2010 -100.00% -314.66%
Details of Coca-Cola Enterprises, Inc.
Expected to close by October 1, 2010 for a closing value of $1.23bn. The deal includes $10 per share + a share in a new bottling company
Source: Merger Arbitrage Mondays: June 07, 2010