Five years after record fundraising for P-E firms, the shops still sit on much of that cash and are coming up against the time when they must "use-it-or-lose-it." As most would rather use it, Barron's screens for attractive targets - market cap of $1B-$10B, an Enterprise Value/EBITDA ratio below 10, and annual cash flow of at least 5% of stock market value. The winners: Guess (GES), Terex (TEX), Charles River Labs (CRL), and Big Lots (BIG).
Charles River Laboratories (CRL +0.4%) acquires Accugenix , a global provider of cGMP-compliant contract microbial identification testing, for around $17M in cash. The acquisition is intended to strengthen CRL's Endotoxin and Microbial Detection1 portfolio by providing clients with state-of-the-art microbial detection services for manufacturing in the biopharmaceutical, medical device, nutraceutical and consumer care industries.
With speculation high that Charles River Labs (CRL) is in play, William Blair estimates a deal could be worth at least $40 and maybe more than $60, with the most likely price in the mid-$40s (today's close was $31.34). Shares fell 3.5% today, but remain up 13% on the week.
Charles River Labs (CRL) is pursuing a sale of the company that could fetch as much as $40/share, and it's "just a matter of time" before a deal is completed, the Deal Reporter says. R.W. Baird expects shares to trade higher on the speculation unless management denies the story. CRL +2.1% premarket.