Market Overview

Benzinga's M&A Chatter for Tuesday September 4, 2012


The following are the M&A deals, rumors and chatter circulating on Wall Street for Tuesday September 4, 2012:

Valeant Pharmaceuticals Agrees To Acquire Medicis Pharmaceutical Corporation for $44.00/Share In Cash

The Deal:
Valeant Pharmaceuticals International (NYSE: VRX) and Medicis Pharmaceutical Corporation (NYSE: MRX) announced Monday that they have entered into a definitive agreement under which Valeant will acquire all of the outstanding common stock of Medicis for $44.00 per share in cash. The transaction, which values Medicis' common stock at approximately $2.6 billion, was unanimously approved by the Boards of Directors of both companies. The $44.00 per share price represents a 39% premium to Medicis' closing share price on Friday, August 31, 2012, the last trading day prior to announcement, and a 31% premium to the three-month average trading price. The transaction is expected to close in the first half of 2013.

Medicis Pharmaceutical closed at $43.65 Tuesday, a gain of 38.31% on 32 times average volume.

Korn/Ferry Acquires Global Novations

The Deal:
Korn/Ferry International (NYSE: KFY), a premier global provider of talent management solutions, announced Tuesday that it has acquired Boston-based Global Novations, LLC, a widely respected, global provider of diversity, inclusion and leadership development solutions. The acquisition is expected to be accretive to earnings in the first year of Korn/Ferry ownership. Global Novations and New MainStream Capital were advised by SunTrust Robinson Humphrey.

Korn/Ferry closed at $15.08 Tuesday, a gain of 5.45% on 1.5 times average volume.

Hearing Takeover Chatter in Polycom

The Rumor:
Polycom (NASDAQ: PLCM) is rumored to have received offers from one or more firms including Avaya, TPG and Silver Lake for around $18 per share. Back in May there was a similar rumor.

A spokesperson for TPG declined comment. Spokespersons for Polycom and the other rumored buyers were not available for comment.

Polycom closed at $10.62 Tuesday, a gain of 1.92% on average volume.

Heckmann Corporation and Power Fuels to Merge in Cash and Stock Deal

The Deal:
Heckmann Corporation (NYSE: HEK) announced Tuesday that it has entered into a definitive agreement with Mark Johnsrud, founder and owner of Badlands Energy, LLC, a North Dakota limited liability company doing business as Power Fuels, to merge with Power Fuels, a privately held North Dakota-based environmental services provider focused on the transportation, treatment, recycling, and disposal of fluids at Power Fuels' sites. Power Fuels is the largest environmental services company in the Bakken Shale basin, a premier unconventional oil shale.

Under terms of the Agreement, Heckmann plans to pay $125 million in cash and 95.0 million shares of the Company's common stock5, subject to, among other things, a two-year lockup agreement and a two-year standstill agreement. Heckmann will also assume/refinance approximately $150 million in Power Fuels' debt. The Company is in discussions with its current lending group to expand the size of its credit facility to accommodate the transaction.

Heckmann closed at $3.71 Tuesday, a gain of 37.92% on 11 times average volume.

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