M&A in the News

Expert insight and analysis on recent deals in the news.

Recently, there have been some fairly significant transactions, and I want to mention these and tell you what they may mean for corporate executives. The first deal we have is Berkshire Hathaway and 3G Capital acquiring Heinz for $23.2 billion. Really, if you include debt, that transaction looks to be just under a $30 billion […]

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The $11 billion merger between US Airways and American Airlines offers a striking example of current trends in mergers and acquisitions: strategic acquisitions. The US Airways and American Airlines merger is an all-stock deal that should bring cost benefits and synergies which allow the company to better handle fixed assets.  In order to remain viable […]

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Although I deal primarily with mergers and acquisitions, acquisition is simply one pathway to external growth and should be considered in a broader context. One of the pathways to external growth to consider is minority interest ownership. Microsoft’s proposed buyout of Dell demonstrates many of the benefits of minority interest ownership, a surprisingly neglected tactic. […]

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Edelman Financial Group agreed to sell their business for $258 million which is reported to be a 43% premium over their stock price. The interesting thing is the agreement includes a 40 day “go-shop clause” where the company can seek higher bids. I have been talking about these provisions for several years and expect you’ll […]

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Fortis, Inc (TSX: FTS), a Canadian utility company, announced yesterday that it is acquiring CH Energy Group (NYSE: CHG) for $1B in cash plus the assumption of $500K in debt, which is about 10x 2011 EBITDA. CH Energy, which is a public utility headquartered in Poughkeepsie, NY, said this about the benefits of the acquisition: […]

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VF agreed to acquire Timberland for $2 billion, which is a 43% premium on its recent stock price.  VF says their focus will be on cost reductions as it tries to consolidate the footwear segment.  Timberland operates on an operating margin under 10%, while VF’s is around 20% — double.  I expect these cost savings […]

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Join Capstone Strategic CEO David Braun, Managing Director John Dearing and Capstone’s Valuation Advisor Todd Nelson as they discuss The Basics of Business Valuation. Register here For many, business valuation is a complex, intimidating topic.  While valuation is simply a process and set of procedures used to determine what a business is worth, it requires […]

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Last week nearly $20 billion of debt was sold in the form of corporate bonds, according to Dealogic, including Google who issued bonds for the first time ever.  So companies continue to have a record amount of cash on their balance sheets, but are also raising MORE cash by issuing low-cost debt.  There are only […]

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AOL is reportedly paying $315 Million for the Huffington Post with most of the payment in cash.  Must be some former Time Warner shareholders who remember how it worked out for them to take stock.  The strategy is to bring content to AOL’s pipeline.  Sound familiar?  Huffington currently has revenues of around $50 Million – […]

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Danaher (NYSE: DHR) is acquiring biomedical testing company Beckman Coulter (NYSE: BEC) for $5.87 Billion.  Danaher’s CFO says they are paying for the deal with 25% in cash, 60% debt, and 15% from equity  — which comes to about 40% down and 60% in debt.  This continues to indicate that the credit markets are likely […]

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Last week, Wendy’s announced it is divesting the Arby’s chain and focusing on growing Wendy’s.  Exiting or divestiture is one of my Five Options for Growth and many executives often think of it as retreat rather than growth. I say otherwise.  Yeah! to Wendy’s.  As the Wall Street Journal reported today this… “is an industry […]

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The largest US-based retailer of cupcakes has agreed to sell to a Special Purpose Acquisition Company (SPAC) called 57th Street General Acquisition Corp for $66 million.  A SPAC is a publicly traded company that raises capital for the purpose of buying companies – think of a private equity company only the money comes from investors […]

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Dell and HP are fighting each other to have 3PAR’s hand in marriage. It all formally started on August 16th with Dell attempting to acquire 3Par for  $18/share. Then on August 23rd, HP entered the race and raised the ante to $24/share.  On August 26, Dell raised its offer again to $24.30/share for an enterprise […]

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This has been an amazing past couple of weeks for the future of the M&A market.  Monday, August 2, was the sixth most active day of debt trading this year with $11.5 Billion placed according to Dealogic.    IBM raised $1.5B of 3-year debt for an astonishing 1%! Other takers of debt were ArcelorMittal, Citigroup, Credit […]

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This post was contributed by Capstone Senior Vice President Wes Teague: Lockheed Martin (LM), one of the country’s largest government contractors, recently announced its intention to sell or spin off one of its oldest and profitable units, the Enterprise Integration Group.  The EIG,  a unit of LM for 42 years and with revenues of over […]

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Private equity fundraising from 82 closed funds totaled only $41 Billion in the second quarter – the lowest level since 2003, according to the Private Equity Professional Digest. This is important news for strategic buyers because it continues to demonstrate that financial buyers will remain limited in their M&A activity – but that the clock […]

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Caterpillar announced it is acquiring Electro-Motive Diesel for $820 Million.  The company, which has revenues of about $1.8 billion is currently owned by two private equity firms who acquired it from General Motors in 2005 for around $200 million (read my other post about PE divesting before tax rates increase). Caterpillar already owns a railcar […]

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Congress is close to taxing “carried-interest” income on fund managers at 30% in 2011 from the current 15% capital gains rate. The rate is likely to go to 33% in 2013.  Congress may exclude the first 25% of income from this higher tax rate (which doesn’t really make sense to me) but the real story […]

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For nearly two years, Mergers & Acquisitions Daily has brought you a fresh perspective to the ever-changing world of M&A. As a veteran practitioner, I have fashioned a new approach to the challenges of external growth — a systematic process that has resulted in numerous successful deals across multiple industries. In this blog I share […]

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Nothing like today’s considerable drop in the market to remind everyone that the economy remains on shaky ground.  I stand by my past prediction that the market will not improve dramatically for another 12 months. This turmoil does two things.  It makes sellers more fearful that the bottom could fall out again and it may […]

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