M&A

Deals: A Week Outdone by a Day?

In our M&A Roundup for the week ended April 5, the number of transactions surged. But the the number of acquisitions announced on Monday alone seiz...
Roy HarrisApril 7, 2008

Dealmakers struck 82 deals valued at $14.37 billion last week, sharply higher than the previous week’s total. But the volume of transactions was nearly overshadowed by the volume of acquisitions reported on Monday, April7 alone.

In the biggest of
Monday’s proposed transactions, Novartis offered to pay Nestlé $11 billion for a 25 percent stake Alcon Inc. and acquire rights to pay $28 billion more to gain a controlling interest in Alcon.

Last week’s transactions were led by TransCanada Corp.’s $2.80-billion agreement to buy KeySpan Ravenswood, an operating plant, from U.K.-based National Grid Plc. The second-largest deal was Liberty Media Corp.’s $2.04-billion purchase of a 7 percent stake in DirecTV Group Inc.

The value of last week’s deals still nearly tripled from the prior week’s $4.85 billion on the basis of the large number of smaller deals. In each of the prior two weeks, only 29 deals were done. For the year-to-date, 974 transactions have totaled $155.65 billion, still far lower than the 1,408 deals worth $450.33 billion at this time in 2007.

TransCanada Corp. to buy KeySpan Ravenswood LLC from National Grid Plc for $2.80 billion

Calgary, Alberta-based energy concern TransCanada agreed to pay cash for KeySpan Ravenswood, the operator of the Ravenswood Generating Facility, from the power and gas distribution company National Grid. Completion is expected by the summer.
Seller financial advisor: Merrill Lynch
Bidder financial advisor: Internal
Seller legal advisor: Skadden Arps Slate Meher & Flom
Bidder legal advisor: Hiscock & Barclay; Hogan & Hartson; Mayer Brown

Liberty Media Corp. to buy a 7-percent stake in DirecTV Group Inc. for $2.04 billion

Englewood, Colo.-based Liberty Media, a holding com, and communications businesses, acquired the additional stake in El Segundo, Calif.-based DirecTV Group, which provides entertainment content and general digital TV broadcasting via satellite and cable networks.
Seller financial advisor: Not available
Bidder financial advisor: Not available
Seller legal advisor: Not available
Bidder legal advisor: Not available

Honeywell International Inc. to buy Norcross Safety Products LLC from Odyssey Investment Partners LLC for $1.44 billion

Morristown, N.J.-based technology and manufacturing company agreed to acquire Oak Brook, Ill.—based Norcross Safety Products, which makes protective and safety equipment manufacturer, for a price that is $1.2 billion excluding debt..
Seller financial advisor: Credit Suisse
Bidder financial advisor: Internal
Seller legal advisor: Kirkland & Ellis
Bidder legal advisor: Bingham McCutchen (formerly Bingham Dana )

O’Reilly Automotive Inc. to buy CSK Auto Corp. for $985 million

Phoenix-based specialty automotive-aftermarket retailer CSK Auto definitively agreed to be acquired by O’Reilly Automotive, which is headquartered in Springfield, Mo., and also deals in that line. The transaction is expected to create synergies of $100 million beginning 2010. The price is $11 of O’Reilly stock and $1 cash per share of CSK, representing a 28.9-percent premium.
Seller financial advisor: JPMorgan
Bidder financial advisor: Lehman Brothers; Bank of America Corp.
Seller legal advisor: Gibson Dunn & Crutcher
Bidder legal advisor: Skadden Arps Slate Meher & Flom

Perini Corp. to buy Tutor-Saliba Corp. for $862 million

Framingham, Mass.-based Perini, a building, civil construction, and construction management company, agreed to acquire Sylmar, Calif.-based civil contractor Tutor-Saliba in a deal expected to close during the third quarter.
Seller financial advisor: Deutsche Bank
Bidder financial advisor: UBS (formerly UBS Warburg)
Seller legal advisor: Latham & Watkins ; Willkie Farr & Gallher
Bidder legal advisor: Kirkland & Ellis

Monsanto Co. to buy De Ruiter Seeds Group BV for $862 million

St. Louis-based Monsanto, a provider of technology-based solutions and agricultural products, agreed to acquire De Ruiter Seeds of Bergschenhoek, Netherlands for cash.
Seller financial advisor: ABN AMRO; Evercore Partners
Bidder financial advisor: Not available
Seller legal advisor: Not available
Bidder legal advisor: Not available

Ansys Inc. to buy Ansoft Corp. for $730 million

Canonsburg, Pa.-based Ansoft, which develops and globally markets engineering simulation software and services used by engineers and designers across a range of industries , signed a definitive agreement to be acquired by Pittsburgh-based Ansys, a developer of electronic design automation software. Both boards approved the merger at a price of $16.25 in cash and 0.431882 Ansys shares for each share of Ansoft, a per-share total of $32.63 that provides a 39.3-percent premium. The transaction is expected to close in the second calendar quarter.
Seller financial advisor: Deutsche Bank
Bidder financial advisor: Not available
Seller legal advisor: Latham & Watkins; Wilson Sonsini Goodrich & Rosati P.C.
Bidder legal advisor: Goodwin Procter

Patriot Coal Corp. to buy Magnum Coal Co. from ArcLight Capital Partners LLC for $718 million

St. Louis-based Patriot Coal, a mining company, agreed to acquire Charleston, W.Va.-based coal producer Magnum Coal for a price that includes net debt of $150 million. Patriot will issue to Magnum approximately 11.9 million shares valued at $47.71 per share in a deal expected to close in the mid-year.
Seller financial advisor: Citigroup
Bidder financial advisor: Lehman Brothers
Seller legal advisor: Skadden, Arps, Slate, Meher & Flom
Bidder legal advisor: Freshfields Bruckhaus Deringer

New York State Common Retirement Fund to buy a 51-percent stake in Shurgard Europe from Public Storage Inc for $605 million

New York Common Retirement Fund (NYCRF), the Albany, NY based state owned retirement fund, has acquired a 51 percent stake in Shurgard Europe, the Brussels, Belgium based operator of self storage facilities, from Public Storage Inc, the listed Glendale, CA based owner and operator of self storage facilities, for a consideration of $605m.
Seller financial advisor: Not available
Bidder financial advisor: Heitman
Seller legal advisor: Wachtell Lipton Rosen & Katz
Bidder legal advisor: Morgan Lewis & Bockius

Church & Dwight Co Inc. to buy Del Pharmaceuticals Inc. from Coty Inc. for $380 million

Church & Dwight , a producer of consumer and specialty products, agreed to acquire Del Pharmaceuticals, a developer, manufacturer, and marketer of cosmetics and over-the-counter pharmaceuticals from beauty and fragrance company Coty in a transaction expected to close in July 2008.
Seller financial advisor: JPMorgan
Bidder financial advisor: Lazard
Seller legal advisor: Covington & Burling
Bidder legal advisor: Dechert

source: mergermarket