M&A Roundup: Week Ending February 23

Sirius Satellite Radio and XM Satellite Radio Holdings; Vulcan Materials and Florida Rock Industries; Shire and New River Pharmaceuticals; James Ri...
Helen ShawFebruary 27, 2007

The largest deal of the week was a $5.6 billion “merger of equals” between the XM and Sirius satellite radio broadcasters, according to data provided to CFO.com by mergermarket; it is likely to raise regulatory concerns at the Federal Communications Commission and the Department of Justice. Three of the ten largest deals were private equity buyouts; last week also saw one investment exit by a private equity firm. Of the investment banks, Goldman Sachs achieved the highest volume, with four top-ten deals.

Sirius Satellite Radio to Buy XM Satellite Radio Holdings for $5.6 Billion

Under the deal, 4.6 shares of Sirius — with a total value of $17.02, based on Sirius’s February 16 share price of $3.70 — will be exchanged for each share of XM.
Seller financial advisor: JPMorgan
Buyer financial advisor: Morgan Stanley
Seller legal advisors: Davis Polk & Wardwell (advising JPMorgan); Jones Day; Latham & Watkins; Skadden Arps Slate Meagher & Flom
Buyer legal advisors: Simpson Thacher & Bartlett; Wiley Rein & Fielding

Vulcan Materials Company to Acquire Florida Rock Industries for $4.4 Billion

One “new company” share will be exchanged for each Vulcan share; Florida Rock shareholders can choose $67 cash or 0.63 “new company” shares, valued at $68.03, for each Florida Rock share.
Seller financial advisor: Lazard
Buyer financial advisor: Goldman Sachs
Seller legal advisors: Weil, Gotshal & Manges; McGuireWoods
Buyer legal advisors: Sullivan & Cromwell (advising Goldman Sachs); Wachtell Lipton Rosen & Katz

Shire to Buy New River Pharmaceuticals for $2.2 Billion

The all-cash deal will pay $64 per New River share.
Seller financial advisors: Bear, Stearns & Co; Merrill Lynch
Buyer financial advisors: Goldman Sachs; Deustche Bank; Morgan Stanley
Seller legal advisors: Skadden Arps Slate Meagher & Flom; Troutman Sanders
Buyer legal advisors: Slaughter and May; Davis Polk & Wardwell; Sullivan & Cromwell (advising Goldman Sachs)

James Richardson International to Buy Archer Daniels Midland’s Agricore United for $1.2 Billion

The cash-and-stock deal values Agricore at $671 million, or $11.15 per share; Archer Daniels Midland, a 28 percent shareholder in Agricore, has agreed to the offer.
Seller financial advisors: Scotia Capital; Blair Franklin Capital Partners
Buyer financial advisor: RBC Capital Markets
Seller legal advisor: Davies Ward Phillips & Vineberg

Kohlberg & Co., Lubert-Adler, and Chrysalis Capital Partners to Buy Central Parking Corp. for $853 Million

The consortium of private-equity buyers have agreed to acquire Central Parking Corp. for $22.53 per share in cash.
Seller financial advisor: Blackstone Group Holdings
Buyer financial advisor: UBS
Seller legal advisors: Harwell Howard Hyne Gabbert & Manner; Willkie Farr & Gallagher (advising Blackstone Group Holdings)
Buyer legal advisors: Sullivan & Cromwell; Ropes & Gray

Cap Rock Holding to Purchase SEMCO Energy for $804 Million

The all-cash deal values the Michigan-based natural gas company at $8.15 per share.
Seller financial advisors: Credit Suisse; BB&T Capital Markets
Buyer financial advisor: Berenson
Seller legal advisors: Dykema Gossett; Troutman Sanders
Buyer legal advisor:Cravath, Swaine & Moore

Apollo Management to Buy Smart & Final from Guichard Perrachon for $793 Million

The cash offer values Smart & Final at $22 per common share.
Seller financial advisors: Goldman Sachs; BNP Paribas; UBS
Buyer financial advisors: Credit Suisse; Bear, Stearns; Rothschild
Seller legal advisors: Skadden Arps Slate Meagher & Flom; Cleary Gottlieb Steen & Hamilton
Buyer legal advisor: Morgan Lewis & Bockius

Whole Foods Market to Acquire Wild Oats Markets for $662 Million

The all-cash deal values Wild Oats at $18.50 per share.
Seller financial advisor: Citigroup
Buyer financial advisor: RBC Capital Markets
Seller legal advisors: Skadden Arps Slate Meagher & Flom; Latham & Watkins (advising Citigroup)
Buyer legal advisor: Hallett & Perrin

Brightpoint to Purchase Dangaard Telecom Holding’s Dangaard Telecom for $609 Million

U.S.-based Brightpoint, a distributor of wireless products, will buy Dangaard, a Denmark-based distributor of mobile phones.
Seller financial advisor: Internal advisors
Buyer financial advisor: Deutsche Bank
Seller legal advisor: Latham & Watkins
Buyer legal advisors: Blank Rome; Baker & McKenzie

Ikaria Holdings to Buy Linde Group’s INO Therapeutics for $499 Million

Ikaria Holdings, a consortium of private equity firms led by New Mountain Capital, has agreed to acquire INO Therapeutics from The Linde Group for $498.71 million and a 17 percent stake in Ikaria Holdings. In a related transaction, Ikaria Holdings will acquire Ikaria Inc. for $171.29 million and merge the two entities.
Seller financial advisor: Morgan Stanley
Buyer financial advisor: Goldman Sachs
Seller legal advisor: Freshfields Bruckhaus Deringer
Buyer legal advisors: Heller Ehrman White & McAuliffe; Fried Frank Harris Shriver & Jacobson; O’Melveny & Myers

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