VideoDealmaking plummeted to a mere $2.74 billion in the week leading up to the Memorial Day holiday. But the collection of smaller transactions — the largest was $915 million — offered an interesting patchwork of consumer products combinations and global connections involving China, India, Israel, and several European countries.
Only 31 North American transactions were reported in the week, according to data provided to CFO.com by mergermarket. That compares to 46 deals that had totaled a healthy $26.42 billion in the prior seven days — a period for which the M&A Roundup had proclaimed, a bit prematurely, that "The Blockbuster Is Back." The smallest of last week's top 10 deals was a mere $80 million combination of two merchant services companies.
Other deals, led by household-appliance maker Salton Inc.'s acquisition of United Pet Group Inc. from Spectrum Brands Inc., did give M&A-watchers some operational blendings to think about, however. And other transactions involved U.S. companies buying Chinese, Indian, Italian, and Dutch interests. In two cases among the top 10, American interests purchased by non-American companies.
Overall, the week's dealmaking built the full year's total to 1,403 transactions worth $303.99 billion, well below the 2,114 deals valued at $734.66 billion for the same period of 2007.
Salton Inc. to buy United Pet Group Inc. from Spectrum Brands Inc. for $915 million
Salton Inc., a Miramar, Fla.-based marketer and distributor of branded small household appliances, agreed to acquire Cincinnati-based United Pet Group from Atlanta-based consumer products company Spectrum Brands Inc. in a deal expected to close in August.
Seller financial advisor: Goldman Sachs
Bidder financial advisor: Centerview Partners; Credit Suisse
Seller legal advisor: Skadden Arps Slate Meagher & Flom; Sutherland Asbill & Brennan
Bidder legal advisor: Paul Weiss Rifkind Wharton & Garrison; SJ Berwin
Heckmann Corp. to buy China Water & Drinks Inc for $764 million
Palm Desert, Calif.-based Heckmann, an investment company operating in the bottled water sector, agreed to pay cash and equity for China Water & Drinks, of Shenzhen, China, a producer and distributor of bottled water. The transaction includes an earn-out of $150 million, and is expected to be completed in the fall.
Seller financial advisor: Roth Capital Partners
Bidder financial advisor: Credit Suisse
Seller legal advisor: Thelen Reid Brown Raysman & Steiner
Bidder legal advisor: DLA Piper
Providence Equity Partners Inc. to buy 20 percent of Aditya Birla Telecom Ltd. from Idea Cellular Ltd. for $646 million
Providence, R.I.-based private equity firm Providence Equity agreed to acquire the 20- percent stake in Mumbai-based Aditya Birla, a wireless communications company, from Mumbai-based Idea Cellular. The transaction is expected to close by August.
Seller financial advisor: Merrill Lynch
Bidder financial advisor: Not available
Seller legal advisor: Not available
Bidder legal advisor: Not available
Enstor Inc. to buy Caledonia Energy Partners LLC from Tenaska Power Fund LP for $285 million
Portland, Ore.-based Enstor, a gas storage and hub service facilities firm, is a subsidiary of Iberdrola Renewables, a Bilbao, Spain-based energy company. Caledonia Energy Partners is a gas storage facilities company based in Omaha. Tenaska Power is an Omaha-based fund that invests in energy sector. It is managed by private equity firm Tenaska Capital Management LLC. The transaction is expected to close in the second quarter.
Seller financial advisor: Credit Suisse
Bidder financial advisor: Not available
Seller legal advisor: Locke Lord Bissell & Liddell
Bidder legal advisor: Porter & Hedges
Tower Semiconductor Ltd. to buy Jazz Technologies Inc. for $171 million
Tower Semiconductor, based in Migdal Haemek, Israel, makes integrated circuits. Its offer for Newport Beach, Calif.-based Jazz, a maker of analog and mixed-signal semiconductor devices, is for $42.14 million in stock and the assumption of about $129 million of debt. Tower will issue 1.8 shares for every Jazz share, implying a per-share price of $2.21, a premium of 251 percent. Completion is expected in the second half.
Seller financial advisor: UBS
Bidder financial advisor: Citibank
Seller legal advisor: Cooley Godward Kronish; Meitar Liquornik Geva & Leshem Brandwein
Bidder legal advisor: O'Melveny & Myers; Yigal Arnon and Co
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