M&A Weekly Recap: Summit Entertainment Wins, Apple Integrates Some Supply Chain

January 14, 2012

Monday

Oracle or Private Equity firms may purchase Brocade Communications who is throwing off so much cash it might be worth 40% more than its current purchase price, according to a Bloomberg analysis.

Investing Insights: Tech Business Recap: Intel Strikes Deals, Microsoft’s Big Shuffle.

Blackstone and DDR Corp. have formed a joint venture to acquire a portfolio of 46 shopping centers for $1.43 billion — including debt — from an affiliate of Elbit Imaging . DDR will start a public offering of 15 million shares to help finance the investment.

Apple confirms it has bought Israeli flash-storage company Anobit. Anobit supplies chips for the iPad and other devices.

Universal American will purchase APS Healthcare from funds managed by Private-Equity firm GTCR for $228 million and up to $50 million based on performance.

Tuesday

Omnicare’s proposed $716 million offer for fellow pharmacy provider PharMerica will be in focus next week.  “The Federal Trade Commission is not offering Omnicare any remedies,” a source says.

Delta Air Lines has hired Blackstone as an advisor to assess a bid for American Airlines.

Don’t Miss: Target Copies Best Buy Model With Apple Boutiques.

Raymond James was down following its agreement to purchase Morgan Keegan from Regions Financial . RJF beefed up its wealth management operation.

Penske Automotive expands its United Kingdom presence. The acquisition of a number of dealerships in Belfast has been made with Isaac Agnew Group. The company says the dealerships are expected to contribute approximately $500 million in annualized revenue, though terms were not disclosed.

Mountain Province Diamonds rose after announcing the spinoof of after of its Kennady North diamond project into a newly incorporated company. The new company will be named Kennady Diamonds, and the new shares will be distributed to shareholders on a pro rata basis.

Wednesday

KKR is contemplating the purchase of Aussie underwear manufacturer Pacific Brands. The deal could be worth $614 million. Pacific says it’s considering the unsolicited offer, but discussions are still at an early stage.

Don’t Miss: McDonald’s and Yum! Brands Seek More International Exposure.

Fossil acquired Skagen Design for $225 million. As part of the agreement, the sellers can receive up to 100,000 additional shares of FOSL stock if the firm meets net sales targets of Skagen-branded products. The cash deal is expected to be finalized next month.

RTI International Metals agreed to purchase Remmele Engineering in an effort to build up its offerings in the aerospace and defense markets and expand into the medical device sector. RTI paid approximately $182 million.

Thursday

Bristol-Myers Squibb has agreed to buy Inhibitex  for $2.5 billion as it looks to boost its pipeline ahead of the loss of patent protection for its blood thinner Plavix. The $26/share bid is over double Inhibitex’s $9.87 close on Friday. Its main drug, for hepatitis C, is only in mid-stage trials.

Investing Insights: Alcoa Inc. Earnings: Margins Shrink as Costs Rise.

Jones Group intends to maintain its ownership of its jeanswear division. It has ended all discussions over its potential sale after announcing talks in October to sell the operations to Israel’s Delta Galil (DELTY.PK) for $350-400 million.

Lloyds is in talks to sell its operations in the United Arab Emirates or UAE to Abu Dhabi Commercial Bank. The operations assets totaled $1.66 billion in 2010. This speculation comes as Lloyds CEO Antonio Horta-Osorio returns after a two-month medical leave of absence to work.

Friday

Georgia Gulf Corp. rose over 30% to $24.48 after rival Westlake Chemical submitted a proposal to acquire the company for $30/share in cash. Georgia Gulf’s current trading price suggests investors expect a higher bid. Westlake says a $30/share deal would be accretive to its earnings in the first fiscal year following the deal’s closing.

Acacia Research announced the acquisition Adaptix for $160 million. Adaptix is a 4G-tech developer.

Don’t Miss: 8 Radar Stocks: Diamond Foods Trying to Bottom, DirecTV Raising Rates and Europe Gets Downgraded.

Oil refiner CVR Energy outperformed after Carl Icahn purchased a 3.5% stake. CVR Energy has responded to the news by stating that it “welcomes the views of all shareholders.”

Blyth spiked after it agreed to purchase the remaining interest of its ViSalus Holdings unit in an all-stock transaction. The company held approximate 71.7% of ViSalus prior to the purchase.

Lions Gate is acquiring fellow studio Summit Entertainment for $412.5 million. That’s higher than the $400 million reported earlier in the week.