• Nov. 26, 2016, 9:11 AM
    • It's no surprise that Republican administrations in general are seen as more friendly towards mergers than Democrats, and since the election, arbitrage spreads (the difference between a target's deal price and its current price) have tightened to the 8-9% range from 11%.
    • However, on an annualized basis, there are still plenty of deals out there offering double-digit returns.
    • Source: Vito Racanelli in Barron's
    • Merger-arb shop WallachBeth Capital is fan of Harman International Industries (NYSE:HAR), which earlier this month drew a cash bid from Samsung for $112 per share vs. its close Friday of $109.74. Another pick is B/E Aerospace (NASDAQ:BEAV) which closed at $59.79 and has a cash and stock deal in hand from Rockwell Collins (NYSE:COL) for $62 per share.
    • Lutetia Capital likes Cabela's (NYSE:CAB), which closed the week at $62.50 vs. Bass Pro Shops' $65.50 bid.
    • The Merger Fund's Roy Behren is confident Qualcomm's (NASDAQ:QCOM) bid for NXP Semiconductors (NASDAQ:NXPI) will pass regulatory muster. NXP's close yesterday of $99.51 is a full 10.5% below the $110 cash offer. If the deal closes in nine months, it's an annualized return of 12.6%.
    • Another deal with maybe overblown antitrust concerns is Danone/WhiteWave Foods (NYSE:WWAV). The spread is just 2%, but a close early next year would mean an annualized return over 10%.
    • Seeking Alpha contributor Chris DeMuth stays on top of merger arb spreads with his M&A Daily.
    Nov. 26, 2016, 9:11 AM | 19 Comments
  • Nov. 22, 2016, 9:14 AM
    • WhiteWave Foods (NYSE:WWAV) announces that it lined up consent from holders of $500M in senior notes in connection to the Danone buyout.
    • The merger remains subject to more regulatory approvals and other customary conditions before closing.
    • WhiteWave currently expects the closing to occur in the first quarter of 2017.
    • WWAV closed at $55.08 yesterday vs. the Danone buyout price of $56.25.
    • Source: Press Release
    Nov. 22, 2016, 9:14 AM
  • Oct. 3, 2016, 6:40 AM
    • Shareholders at WhiteWave Foods (NYSE:WWAV) are expected to support the company's planned merger with Danone (OTCQX:DANOY) when they gather to vote tomorrow at a special meeting in Denver.
    • Major proxy firms Glass Lewis & Co. and ISS both advised shareholders to vote yes on the combination of food sellers.
    • WhiteWave closed at $54.13 on Friday, lower than the buyout offer price of $56.25.
    Oct. 3, 2016, 6:40 AM | 1 Comment
  • Jul. 7, 2016, 7:55 AM
    • Investors have bid up WhiteWave Foods (NYSE:WWAV) to as high as $56.80 in the premarket session on some speculation that a higher offer than Danone's $56.25 could arrive down the road.
    • Analysts say that WhiteWave has traded with a takeover premium ever since the company spun off from Dean Foods and see a spillover effect across the sector.
    • "It is likely this potential transaction further fuels the acquisition speculation gripping the food stocks, pushing multiples even higher," observes Stifel Nicolaus analysts Christopher Guest.
    • Hain Celestial (NASDAQ:HAIN), one of the usual food M&A suspects, is up 4.31% in premarket action.
    • Previously: Danone agrees to $12.5B deal for WhiteWave Foods (July 7)
    • WWAV +19.02% to $56.45.
    Jul. 7, 2016, 7:55 AM | 11 Comments
  • Jul. 7, 2016, 2:33 AM
    • Danone (OTCQX:DANOY), the world's largest yogurt maker, has agreed to buy U.S. health group WhiteWave Foods (NYSE:WWAV) in what would be the French company's largest acquisition in 10 years.
    • The offer equates to $56.25 per share in cash, resulting in an enterprise value of around $12.5B, and will double the size of Danone's U.S. business.
    • WWAV +18% premarket.
    Jul. 7, 2016, 2:33 AM | 37 Comments
  • Aug. 19, 2015, 11:38 AM
    • Large food companies need to focus on bold M&A and innovation actions over recharging iconic brands, concludes Rabobank in a new report on the sector.
    • A shift in consumer preferences has sparked a need to introduce new brands which are on trend - instead of focusing on "innovation-lite" and product reformulation strategies. Buying promising brands at an earlier stage than normal is seen as a forward-thinking strategy.
    Aug. 19, 2015, 11:38 AM | 22 Comments
  • Jun. 10, 2015, 7:40 AM
    • WhiteWave Foods (NYSE:WWAV) acquires Vega for $550M.
    • Vegas is active in the growing plant-based nutrition industry and reported sales of over $100M for the last 12 months.
    • WhiteWave expects the impact of the purchase to be neutral to slightly positive to EPS in 2015 and add $0.06 to EPS in 2016.
    • The deal is expected to close in Q3.
    Jun. 10, 2015, 7:40 AM | 4 Comments
  • Mar. 25, 2015, 9:27 AM
    Mar. 25, 2015, 9:27 AM
  • Dec. 22, 2014, 10:39 AM
    • Wells Fargo turns the spotlight back on the potential unlocked by a combination of Coca-Cola (KO +1.1%) and WhiteWave Foods (WWAV +1.2%).
    • The investment firm thinks a deal, full or partial acquisition, is more likely with Coca-Cola in a "partnership" frame of mind.
    • WhiteWave brings new categories to the table, while Coca-Cola's enormous distribution network could take WWAV to the next level.
    Dec. 22, 2014, 10:39 AM | 1 Comment
  • May 29, 2014, 10:03 AM
    • Shares of WhiteWave Foods (WWAV +4.6%), Dean Foods (DF +1.3%), and Sanderson Farms (SAFM +2.7%) are higher after Tyson Foods tops the bid of Pilgrim's Pride for Hillshire Brands.
    • Though consolidation in the food sector is expected to pick up, some analysts warn the takeover premium in select stocks is getting played out.
    May 29, 2014, 10:03 AM | 1 Comment
  • Dec. 9, 2013, 6:47 AM
    • WhiteWave Foods (WWAV) is acquiring Earthbound Farm - the largest organic produce brand in North America - for $600M in cash
    • The acquisition is expected to be accretive to EPS (+$0.07 before transaction costs) in the first year after close. Subject to regulatory approvals etc., it is expected to be completed during Q1 2014. WhiteWave plans to operate Earthbound Farm as a separate business unit.
    • Earthbound's anticipated 2013 net sales are over $500M.
    • WhiteWave will fund the acquisition with borrowings under its existing credit facilities, and intends to increase its credit facilities by $500M to fund further growth.
    Dec. 9, 2013, 6:47 AM | 1 Comment
  • May 23, 2013, 7:05 PM

    WhiteWave (WWAV) announces the completion of its spinoff from Dean Foods (DF). In addition, its board has authorized a $150M share repurchase program. The primary purpose of the program will be to offset dilution from WhiteWave’s equity compensation plans, but the company reserves the option to make discretionary, opportunistic purchases as well. WWAV +0.7%, DF +0.3% AH.

    May 23, 2013, 7:05 PM