Market Overview

Wall Street's M&A Chatter From June 29: West Marine, Rite Aid-Walgreens-Fred's, Oaktree-Fifth Street, Bass Pro-Cabelas


The following are the M&A deals, rumors and chatter circulating on Wall Street for Thursday, June 29, 2017.

Rite Aid to Sell 2,186 Rite Aid Stores, Related Assets to Walgreens Boots Alliance for $5.175B; Merger Agreement

The Deal:

Rite Aid Corporation (NYSE: RAD) announced it has entered into an asset purchase agreement with Walgreens Boots Alliance Inc (NASDAQ: WBA), under which WBA will acquire 2,186 stores, related distribution assets and inventory from Rite Aid for $5.175 billion in cash. In addition, Rite Aid has the option to purchase generic drugs sourced through an affiliate of Walgreens Boots at cost, for a period of 10 years.

Rite Aid announced the immediate termination of the merger agreement with Walgreens Boots, under which WBA would have acquired all outstanding shares of Rite Aid, and will receive from Walgreen Boots a termination fee in the amount of $325 million in cash. The divestiture agreement with Fred's, Inc. (NASDAQ: FRED) was also terminated.

Rite Aid closed at $2.89, down $1.04.

Oaktree Nears Deal to Acquire Fifth Street Asset Management

The Rumor:

Oaktree Capital Group LLC is nearing a buyout of debt investor Fifth Street Asset Management Inc., according to people familiar with the matter. Oaktree is set to pay roughly $350 million in a deal that could be announced soon, the sources said.

Fifth Street Asset Management closed at $4.90, up $1.10.

FTC Set to Approve Bass Pro-Cabelas Merger

The Rumor:

Shares of Cabelas Inc (NYSE: CAB) spiked to a high of $60.00 on Thursday on a report from Capitol Forum that the FTC is ready to approve the merger with Bass Pro Shops. Cabelas has agreed to be acquired by Bass Pro Shops for $61.50 per share in cash.

Earlier this month, the same publication reported that the deal wasn't triggering major concerns.

Cabela's closed at $59.60, up $1.49.

West Marine Inc. to be Acquired by Monomoy Capital Partners for $12.97/Share

The Deal:

West Marine, Inc. (NASDAQ: WMAR) and New York-based private equity fund, Monomoy Capital Partners, announced Thursday that they have executed a definitive merger agreement under which a wholly owned affiliate of Monomoy will acquire all of the outstanding shares of common stock of West Marine for $12.97 per share in cash. The transaction is expected to close in Q3 of this year.

West Marine closed at $9.65, and traded as high as $12.63 after-hours.


Related Articles (FRED + CAB)

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Posted-In: M&A News Rumors

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