Market Overview

Benzinga's M&A Chatter for Monday April 2, 2012

The following are the M&A deals, rumors and chatter circulating on Wall Street for Monday April 2, 2012:

Coty Offers To Acquire Avon Products For $10B

The Offer:
Coty has offered $23.25 per share to acquire Avon Products (NYSE: AVP). The offer represents a 20% premium over Friday's closing price of $19.36.

Avon promptly rejected the offer, saying it was not in the best interest of the shareholders.

Following Avon's rejection of Coty's offer, it was reported, but not confirmed, that Avon had hired Goldman Sachs as an adviser during the sale process.

Avon Products closed at $22.69 Monday, a gain of 17.20% on 12 times the average daily volume.

Dell Announces Intent to Acquire Wyse Technology

The Deal:
Dell announced Monday it has signed a definitive agreement to acquire Wyse Technology, the global leader in cloud client computing, to significantly extend its desktop virtualization offerings. The addition of Wyse will expand Dell's desktop virtualization capabilities and provide new solutions and services opportunities for the full range of Dell's enterprise offerings.

Dell was reported to have paid $1 billion to acquire Wyse Technology.

Dell closed at $16.77 Monday, a gain of 1.05% on 72% of the average daily volume.

KKR Natural Resources Acquires Barnett Shale and Arkoma Basin Properties From WPX Energy for $306 Million

The Deal:
Kohlberg Kravis Roberts announced Monday that it has entered into a definitive agreement to acquire certain Barnett Shale and Arkoma Basin properties from WPX Energy for $306 million. The transaction, which is expected to close in the second quarter, is being made through KKR Natural Resources, KKR's partnership with Premier Natural Resources to pursue investments in North American oil and gas properties, and is KNR's third acquisition in the Barnett Shale.

Kohlberg Kravis Roberts closed at $15.01 Monday, a gain of 1.21% on almost twice the average daily volume.

Express Scripts and Medco Health Solutions Complete Merger

The Deal:
Express Scripts (NASDAQ: ESRX) completed its previously announced $29.1 billion acquisition of Medco Health Solutions Monday, creating the country's leading healthcare services company.

"Our merger is exactly what the country needs now," said George Paz, chairman and chief executive officer, Express Scripts. "It represents the next chapter of our mission to lower costs, drive out waste in healthcare and improve patient health. We remain focused on formulary management, channel management and closing gaps in care, which will allow us to further improve the health of people with chronic and complex medical conditions.

"Our clients are challenged to provide robust health benefits to American families. We have an unprecedented opportunity to help them by making the use of medicine safer, more affordable and more accessible."

Express Scripts closed at $55.50 Monday, a gain of 2.44% on almost 3 times the average daily volume.

Schiff Nutrition Acquires Airborne

The Deal:
Schiff Nutrition (NYSE: WNI) acquired Airborne, Inc., a leading provider of immune support products on March 30, 2012 for $150 million in cash, subject to certain adjustments.

“Schiff is focused on building premium brands and leading innovation,” stated Tarang Amin, president and chief executive officer. “We are excited about the Airborne acquisition, which fits well with our strategy and establishes Schiff as a leader in the immune support segment.

Schiff Nutrition closed at $12.90 Monday, a gain of 4.96% on twice the average daily volume.

Ebix Acquires Taimma Communications

The Deal:
Ebix (NASDAQ: EBIX) announced Monday that it has signed an agreement to acquire Montreal based Taimma Communications, a leading provider of innovative E-Learning medical education solutions to the pharmaceutical, biotechnology and healthcare industries. Ebix also announced that Taimma would be immediately integrated into its A.D.A.M. Health Information Exchange Division.

Ebix expects the transaction to be accretive to Ebix Earnings per Share. Ebix disclosed that it funded this transaction completely in cash using its existing cash reserves. No Ebix shares were issued and no investment bankers were involved in the transaction on the Ebix side.

Ebix closed at $23.46 Monday, a gain of 1.30% on half the average daily volume.

Sigma-Aldrich Acquires Research Organics

The Deal:
Sigma-Aldrich Corporation (NASDAQ: SIAL) announced Monday it has acquired all outstanding shares of Cleveland, Ohio-based, Research Organics to expand the Company's buffer production capacity and to increase its portfolio of PharmaGrade raw materials for the biopharmaceutical and diagnostic markets. Research Organics is a leading supplier of high purity biochemicals for use in molecular biology, diagnostics, cell culture, pharmaceuticals, biopharmaceuticals, life sciences and biotechnology and will transition into SAFC, the custom manufacturing and services business unit of Sigma-Aldrich.

Terms of the purchase were not disclosed. The Company expects this acquisition to be neutral to earnings per share in 2012.

Sigma-Aldrich closed at $74.43 Monday, a gain of 1.88% on slightly more than the average daily volume.

ICG Acquires MSDSonline

The Deal:
ICG Group (NASDAQ: ICGE) announced Monday that it has acquired MSDSonline. Based in Chicago, MSDSonline offers a suite of cost-effective, cloud-based solutions that help environmental, health and safety professionals more efficiently manage and reduce potential workplace and environmental hazards as part of their overall social responsibility and compliance programs.

ICG paid approximately $48 million for a 96% primary ownership stake, with MSDSonline management owning the residual. MSDSonline was breakeven on approximately $13 million of 2011 revenue and expects 2012 revenue of approximately $16 million, with increased profitability anticipated as it invests for growth.

ICG Group closed at $9.22 Monday, a gain of 3.02% on slightly less than the average daily volume.

Emerson Acquires Marine Controls Business From Johnson Controls

The Deal:
Emerson Electric (NYSE: EMR) announced Monday it has acquired the Marine Container and Boiler business of Johnson Controls (NYSE: JCI), enabling Emerson Climate Technologies to expand its refrigeration technology and solutions offerings in the global transportation sector. Terms of the acquisition were not disclosed.

The new Emerson offerings will be known as Transportation Solutions within the Retail Solutions business of Emerson Climate Technologies.

Emerson Electric closed at $52.54 Monday, a gain of 0.69% on slightly less than the average daily volume.

Power Integrations Agrees to Acquire CT-Concept Technologie

The Deal:
Power Integrations (NASDAQ: POWI), the leader in high-voltage integrated circuits for energy-efficient power conversion, announced Monday that it has signed an agreement to acquire privately held CT-Concept Technologie AG for approximately 105 million Swiss francs in cash, or about US$115 million, net of cash assumed.

Based on full-year 2011 results, Power Integrations estimates that the acquisition will add approximately 10 percent to its annual revenues, and expects the transaction to be immediately accretive to its non-GAAP gross margin, operating margin and earnings per share. The company expects the transaction to close during the second quarter of 2012.

In conjunction with its approval of this transaction, Power Integrations' board of directors has cancelled the company's previously announced $30 million share-repurchase authorization.

Power Integrations closed at $38.35 Monday, a gain of 3.3% on more than than twice the average daily volume.

RadNet Acquires West Coast Radiology

The Deal:
RadNet (NASDAQ: RDNT) reported Monday it has executed a definitive agreement to acquire the assets of West Coast Radiology, which include five multi-modality imaging centers in Orange County, California.

The acquisition is expected to close in April, 2012. Total purchase consideration for the acquisition is undisclosed.

RadNet closed at $3.31 Monday, a gain of 4.09% on 1.5 times the average daily volume.

Bloomberg Reports Molycorp Could Get $60 in a Buyout

The Rumor:
Molycorp (NYSE: MCP) could get as much as $60 per share in a takeover, according to Bloomberg. Molycorp announced a merger agreement with Neo Material Technologies on March 9. On February 1, Molibdenos y Metales agreed to invest approximately $390 million in Molycorp in exchange for 12.5 million shares of Molycorp common stock.

A Molycorp spokesperson was not available for comment.

Molycorp closed at $34.42 Monday, a gain of 1.74% on average volume.

Hearing Intel Has Made Offer to Acquire Nvidia

The Rumor:
Intel (NASDAQ: INTC) has approached Nvidia (NASDAQ: NVDA) with an offer of $22 per share, according to sources.

A spokesperson for Nvidia declined comment on the rumor. An Intel spokesperson was not available for comment.

Nvidia closed at $15.33 Monday, a loss of 0.42% on 71% of the average daily volume.

Hearing Huntsman Hires Bank of America as Adviser

The Rumor:
Huntsman (NYSE: HUN) has hired Bank of America as an adviser to explore strategic alternatives, according to sources. Huntsman stated on March 8, they had no interest in a sale at the current valuation. A Huntsman spokesperson would not comment on the report.

Huntsman closed at $14.99 Monday, a gain of 7% on almost twice the average daily volume.

Hearing Takeover Rumors in On Track Innovations

The Rumor:
On Track Innovations (NASDAQ: OTIV) could be a takeover target, according to an article in Globes. An On Track Innovations spokesperson was not available for comment.

On Track Innovations closed at $1.78 Monday, a gain of 5.95% on 4 times the average daily volume.

Posted-In: Long Ideas News Short Ideas Rumors M&A Global After-Hours Center Movers

 

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