Market Overview

Benzinga's M&A Chatter for Monday November 26, 2012

The following are the M&A deals, rumors and chatter circulating on Wall Street for Monday November 26, 2012:

McGraw-Hill to Sell Education Unit to Apollo for $2.5B

The Deal:
McGraw-Hill Companies (NYSE: MHP) announced Monday it has signed a definitive agreement to sell its McGraw-Hill Education business to investment funds affiliated with Apollo Global Management, LLC (NYSE: APO), for a purchase price of $2.5 billion, subject to certain closing adjustments. As part of this transaction, McGraw-Hill will receive $250 million in senior unsecured notes issued by the purchaser at an annual interest rate of 8.5%.

The transaction, which is expected to close in late 2012 or early 2013, is subject to regulatory approval and customary closing conditions.

McGraw-Hill Companies closed at $51.89 Monday, a gain of 0.40% on 2.5% times average volume.

AvalonBay Announces Agreement to Acquire 40% of Archstone for $16B

The Deal:
AvalonBay Communities (NYSE: AVB) along with Equity Residential (NYSE: EQR) announced Monday that the companies entered into an agreement with Lehman Brothers Holdings (OTC: LEHMQ) to acquire the assets and liabilities of Archstone Enterprise LP (“Archstone”), which consist principally of a portfolio of high quality apartment communities in major markets in the United States, for approximately $16 billion in the aggregate. Under the terms of the Agreement, AvalonBay will acquire approximately 40% of Archstone's assets and liabilities and Equity Residential will acquire approximately 60% of Archstone's assets and liabilities.

The transaction is expected to close during the first quarter of 2013.

AvalonBay Communities closed at $128.95 Monday, but traded 1.3% lower after hours.

Merit Medical Signs Agreement to Acquire Thomas Medical Products for $167M in Cash

The Deal:
Merit Medical Systems (NASDAQ: MMSI) announced Monday that it has entered into a stock purchase agreement to acquire Thomas Medical Products from GE Healthcare (NYSE: GE) in an all-cash transaction valued at approximately $167 million, subject to customary post-closing adjustments.

Merit currently anticipates that the proposed transaction will close prior to December 31, 2012.

Merit Medical Systems closed at $13.23 Monday and traded slightly higher after-hours.

Onex to Acquire USI for $2.3B

The Deal:
Onex Corporation (OTC: ONEXF) announced Monday that it has agreed to acquire USI, a leading U.S. provider of insurance brokerage services, for $2.3 billion.

The transaction is anticipated to close by the end of 2012 subject to customary conditions and regulatory approvals.

Onex closed at $40.45 Monday, down $0.32.

Apollo in Talks to Buy UK Jewelry Chain Owner Aurum

The Rumor:
Private equity firm Apollo Global Management (NYSE: APO) is rumored to be in talks to acquire UK Jewelry retailer Aurum, according to a report from the UK Telegraph late Sunday.

A spokesperson for Apollo was not available for comment.

Apollo Global Management closed at $15.27 Monday, a loss of $0.06 on lower than average volume.

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

 

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