M&A

Deals: Hey Abbott! Advanced Med Buy Tops List

In our M&A Roundup for the week ending Jan. 18, there are fewer deals than the previous week, but they're worth three times as much — thanks to the...
Roy HarrisJanuary 20, 2009

With the 2009 merger-and-acquisition game settling down to a period of mid-sized deals in North America, volume still more than trebled last week, thanks largely to Abbott Laboratories’ $2.86-billion purchase of optometric technology company Advanced Medical Optics Inc.

That transaction was followed by two deals worth more than $300 million: the sale by Constellation Brands of its spirits business to New Orleans-based Sazerac Co., and American International Group Inc.’s sale of its AIG Life Insurance Co. of Canada unit to Bank of Montreal.

The 36 deals struck in the week ended Sunday, Jan. 18, were one fewer that in the previous week, according to data provided to CFO.com by mergermarket. However, last week’s deals rang up a $4.23 billion total value, compared with $1.42 billion represented by 37 transactions.

For the year-to-date, 83 deals now have been struck, worth $5.99 billion. At the same time last year, 284 transactions accounted for $49.15 billion.

Abbott Laboratories to buy Advanced Medical Optics Inc. for $2.86 billion

Santa Ana, Calif.-based Advanced Medical, an optometric technology and support company, definitively agreed to be acquired by Abbott Park, Ill.-based health care company Abbott Laboratories for $22 a share, a premium of 148.58 percent. Both boards approved the merger, which had an implied equity value of about $1.324 billion, and is expected to close in the current quarter.
Seller financial advisor: Goldman Sachs; UBS
Bidder financial advisor: Morgan Stanley
Seller legal advisor: Dewey & LeBoeuf (advising UBS); Latham & Watkins (advising Goldman Sachs); Skadden Arps Slate Meagher & Flom
Bidder legal advisor: Baker & McKenzie; Jones Day

Sazerac Co. to buy the spirits business of Constellation Brands Inc. for $334 million

Fairport, N.Y.-based alcoholic beverage producer and distributor Constellation Brands definitively agreed to sell its spirits business to New Orleans-based distilleries owner and operator Sazerac for a price that includes $274 million cash and $60 million through medium-term financing by Constellation at market interest rates. The sale will provide Constellation with net after-tax proceeds of $210 million. The sold businesses had 2008 revenues of $200 million. The transaction is expected to close at the end of February.
Seller financial advisor: JPMorgan
Bidder financial advisor: Internal
Seller legal advisor: Nixon Peabody
Bidder legal advisor: Cooley Godward Kronish

Bank of Montreal to buy AIG Life Insurance Co. of Canada from American International Group Inc. for $316 million

Montreal-based BMO Financial Group, a financial services group, agreed to acquire Toronto-based AIG Life of Canada from New York-based AIG in a cash transaction expected to close by June 1.
Seller financial advisor: JPMorgan; Morgan Stanley
Bidder financial advisor: BMO Capital Markets
Seller legal advisor: Debevoise & Plimpton; Stikeman Elliott
Bidder legal advisor: Osler Hoskin & Harcourt

Medtronic Inc. to buy Ablation Frontiers Inc. for $225 million

Minneapolis-based medical technology company Medtronic agreed to acquire Carlsbad, Calif.-based medical devices maker Ablation Frontiers. Under the deal’s terms, potential additional payments could be made, contingent on achieving clinical milestones. The transaction was approved by Ablation Frontiers shareholders, and is expected to close in Medtronic’s April 24 fourth quarter.
Seller financial advisor: JPMorgan
Bidder financial advisor: Not Available
Seller legal advisor: Not Available
Bidder legal advisor: Cleary Gottlieb Steen & Hamilton

Pelican Products Inc. to buy Hardigg Industries Inc. for $200 million

Torrance, Calif.-based Pelican, a designer and maker of advanced lighting systems and cases, along with management of Hardigg, agreed to acquire Hardigg, a privately held South Deerfield, Mass.-based manufacturer of rotomolded, heavy duty shipping cases and containers for transporting specialized equipment. Pelican is a portfolio company of New York City-based private equity firm Behrman Capital LP.
Seller financial advisor: Harris Williams & Co
Bidder financial advisor: Behrman Capital
Seller legal advisor: Bulkley Richardson & Gelinas
Bidder legal advisor: Latham & Watkins

Vector Capital to buy Aladdin Knowledge Systems Ltd. for $160 million

Petach Tikva, Israel-based digital security company Aladdin Knowledge definitively agreed to be acquired by an investor group led by San Francisco-based private equity firm Vector Capital. The $11.50-a-share cash price offers a premium of 19.7 percent. The transaction is expected to close in two to three months.
Seller financial advisor: Credit Suisse
Bidder financial advisor: Not Available
Seller legal advisor: Herzog Fox Neeman; Kramer Levin Naftalis & Frankel
Bidder legal advisor: Meitar Liquornik Geva & Leshem Brandwein; O’Melveny & Myers; Shearman & Sterling

Beijer AB to buy Carrier ARW from Carrier Corp. for $136 million

Malmo, Sweden-based industrial and trading company Beijer AB agreed to pay stock for the Europe and South Africa refrigeration wholesale distribution operations of Framington, Conn.-based Carrier, an engineering company and manufacturer of air conditioning equipment and compressor chiller packages. It is a subsidiary of United Technologies Corp., the Hartford, Conn.-based conglomerate. Terms call for G & L Beijer to issue to Carrier 8,796,139 of its shares, of which 358,710 would be A shares and 8,437,429 B shares. After completion, existing Beijer shareholders and Carrier will respectively own 66.7 percent and 33.3 percent of the votes, and 58.5 percent and 41.5 percent of the equity capital of Beijer. The acquisition requires the approval of at least two thirds of votes and capital by the G & L Beijer shareholders, voting at the Jan. 29 shareholders meeting.
Seller financial advisor: Not Available
Bidder financial advisor: Not Available
Seller legal advisor: Vinge
Bidder legal advisor: Mannheimer Swartling

Rhodia to buy McIntyre Group Ltd. for $100 million

Courbevoie, France-based chemical manufacturer Rhodia agreed to acquire University Park, Ill.-based McIntyre Group, a privately held chemical company, in a transaction expected to close in the first quarter.
Seller financial advisor: Not Available
Bidder financial advisor: Not Available
Seller legal advisor: Bryan Cave
Bidder legal advisor: Jones Day

Perini Corp. to buy Keating Building Corp. for $43 million

Perini, a Framingham, Mass.-based building, civil construction, and construction management company, acquired privately held, Philadephia-based Keating, a full-service contracting, construction management, and building company, for cash. An additional amount will be determined based on Keating’s operating results for 2009 through 2011.
Seller financial advisor: Not Available
Bidder financial advisor: Not Available
Seller legal advisor: Not Available
Bidder legal advisor: Not Available

Main Street Capital Corp. to buy Walden Smokey Point Inc. for $34 million

The management of Arlington, Wash.-based logistics company Smokey Point acquired the company in a management buyout backed by Houston-based private equity firm Main Street Capital Corp. Main Street Capital acquired an 8.5-percent equity interest by investing $4.8 million in second lien debt and $600,000 in equity. As a result of the acquisition Smokey Point was renamed Walden Smokey Point Inc.
Seller financial advisor: Allegiance Capital
Bidder financial advisor: Not Available
Seller legal advisor: Not Available
Bidder legal advisor: Not Available

source: mergermarket