April 5, 2010 | Merger Arbitrage | Author Asif
Last week was another active week on the mergers and acquisitions front with four new deals announced, two completed and one deal sweetened to the tune of $100 million. Private investor group SSI Investments bumped up its $1.1 billion or $10.80 per share bid for SkillSoft (SKIL) to $1.2 billion or $11.25 per share. Based on the closing price of $11.10 last Thursday, the spread on the deal is still 15 cents or 1.35%. Given that the deal could close by the end of May, that represents an 8.81% annualized return.
The two deals that closed were the acquisition of Zabera Systems (ZRBA) by Woodstream Corp and the acquisition of K-Tron International (KTII) by casket maker Hillenbrand (HI).
The four new deals announced include the acquisition of Bell Microproducts (BELM) by Avnet (AVT) for $7 per share, the acquisition of BWAY Holdings by Madison Dearborn for $20 per share, theacquisition of White Electronic Designs (WEDC) by Microsemi (MSCC) for $7/share and theacquisition of North American Galvanizing & Coatings (NGA) by AZZ, Inc. (AZZ) for $7.50/share. As you can see from the table below, the spread on these four deals either does not exist or in the case of BWAY Holdings, the market is willing to pay more than the $20 announced price.
| Symbol | Announced Date | Acquiring Company | Closing Value | Closing Price | Last Price | Closing Date | Profit | Annualized Profit | |
| + | AYE | 2/11/2010 | FirstEnergy | $8.5 billion | 26.32 | 23.05 | 3/31/2011 | 14.19% | 14.55% |
| + | SSE | 2/23/2010 | Naugatuck Valley Financial Corp | $19.5 million | 7.25 | 6.75 | 8/16/2010 | 7.41% | 20.64% |
| + | STBK | 3/18/2010 | Roma Financial Corp | $14.7 million | 2.52 | 2.36 | 8/16/2010 | 6.78% | 18.89% |
| + | PINN | 2/24/2010 | Investor Group lead by Scotia Waterous (USA) | $11 million | 0.34 | 0.3202 | 5/17/2010 | 6.18% | 53.74% |
| + | SWWC | 3/3/2010 | Institutional Investors | $275 million | 11 | 10.39 | 5/17/2010 | 5.87% | 51.02% |
| + | BNE | 2/24/2010 | RR Donnelley | $481 million | 11.5 | 11.09 | 9/30/2010 | 3.70% | 7.71% |
| + | SII | 2/19/2010 | Schlumberger | $7.5 billion | 44.98 | 43.59 | 9/30/2010 | 3.19% | 6.65% |
| + | MAM | 3/12/2010 | Emera Inc. | $75.7 million | 45 | 43.75 | 12/31/2010 | 2.86% | 3.92% |
| + | IUSA | 3/8/2010 | CCMP | $460 million | 8 | 7.83 | 6/30/2010 | 2.17% | 9.32% |
| + | ORCD | 3/16/2010 | eMusic | $12.77 million | 2.05 | 2.01 | 8/16/2010 | 1.99% | 5.54% |
| + | RISK | 3/1/2010 | MSCI | $1.55 billion | 22.92 | 22.6 | 7/16/2010 | 1.42% | 5.12% |
| + | SKIL | 2/12/2010 | consortium of private equity funds | $1.2 billion | 11.25 | 11.1 | 5/31/2010 | 1.35% | 8.81% |
| + | MIL | 3/1/2010 | Merck | $6 billion | 107 | 105.94 | 9/30/2010 | 1.00% | 2.09% |
| + | ADG | 1/19/2010 | Chemring Group Plc | $59 million | 7.25 | 7.18 | 4/19/2010 | 0.97% | |
| + | RBI | 3/15/2010 | affiliate of Oncap Management Partners L.P. | 13.55 | 13.43 | 8/16/10 | 0.89% | 2.49% | |
| + | PRPX | 2/17/2010 | L.B. Foster Co. | $112 million | 11.71 | 11.62 | 6/30/2010 | 0.77% | 3.33% |
| + | PIII | 2/18/2010 | Lineage | $16.7 million | 5.86 | 5.8201 | 5/17/2010 | 0.69% | 5.96% |
| + | TUTR | 3/26/2010 | Thoma Brava | $141 million | 5.6 | 5.57 | 7/31/2010 | 0.54% | 1.69% |
| + | CXG | 3/22/2010 | Consol Energy Inc. | $363 million | 38.25 | 38.05 | 5/5/2010 | 0.53% | 6.40% |
| + | CITP | 2/2/2010 | Manpower | $375.8 million | 17.65 | 17.59 | 4/2/2010 | 0.34% | -41.50% |
| + | TRA | 3/12/2010 | CF Industries Holdings, Inc. | $4.7 billion | 45.96 | 45.81 | 4/12/2010 | 0.33% | 17.07% |
| + | NGA | 4/1/2010 | AZZ Inc. | $125.6 million | 7.5 | 7.49 | 8/31/2010 | 0.13% | 0.33% |
| + | FACT | 3/9/2010 | Abbot | $450 million | 27 | 26.98 | 5/17/2010 | 0.07% | 0.64% |
| + | WEDC | 3/30/2010 | Microsemi Corporation | $100 million | 7 | 7 | 6/27/2010 | 0.00% | 0.00% |
| + | BELM | 3/29/2010 | Avnet | $252 million | 7 | 7 | 6/30/2010 | 0.00% | 0.00% |
| + | CFL | 1/18/2010 | Tyco International | $2.9 billion | 42.5 | 42.65 | 6/26/2010 | -0.35% | -1.58% |
| + | CKR | 3/1/2010 | Thomas H. Lee | $928 million | 11.05 | 11.11 | 5/17/2010 | -0.54% | -4.69% |
| + | LGN | 1/22/2010 | Lone Star Funds | $270 million | 2.5 | 2.52 | 5/17/2010 | -0.79% | -6.90% |
| + | ZNT | 2/18/2010 | Fairfax Financial Holdings | $I.4 billion | 38 | 38.34 | 5/17/2010 | -0.89% | -7.71% |
| + | RCNI | 3/5/2010 | Abry | $1.2 billion | 15 | 15.15 | 9/30/2010 | -0.99% | -2.07% |
| + | TWLL | 3/22/2010 | Intersil Corp. | $400 million | 18.5 | 18.71 | 5/17/2010 | -1.12% | -9.75% |
| + | CHRD | 3/15/2010 | Pegasystems | $161.5 million | 5 | 5.08 | 5/17/2010 | -1.57% | -13.69% |
| + | BWY | 3/29/2010 | Madison Dearborn Partners, LLC ("MDP") | $915 million | 20 | 20.34 | 8/16/2010 | -1.67% | -4.66% |
| + | CCE | 2/25/2010 | The Coca-Cola Company | $12.3 billion | 27.89 | 10/1/2010 | -100% | -207.39% |
No comments:
Post a Comment