Merger Arbitrage Mondays – January 13, 2014

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January 13, 2014 | Merger Arbitrage | | Author Asif

Merger Activity increased last week with with three new mergers announced, and three deals closing.

You can find all the active deals listed below in our Merger Arbitrage Tool that automatically updates itself during market hours.

Deal Statistics:

Total Number of Deals Closed in 2014 9
Total Number of Pending Deals
Cash Deals 44
Stock Deals 9
Stock & Cash Deals 10
Total Number of Pending Deals 63
Total Deal Size $106.25 billion

New Deals:

  1. The acquisition of Tower Group International (TWGP) by ACP Re Ltd. for $172.1 million or $3.00 per share in cash.
  2. The acquisition of Pacer International (PACR) by XPO Logistics (XPO) for an enterprise value of $296 million. Shareholders of Pacer International will receive $6.00 in cash and $3.00 of XPO Logistics common stock for each share of Pacer common stock, subject to a price collar. If the average price of XPO Logistics stock during the 10 trading days prior to closing is above $32.94 per share, the stock portion will be fixed at 0.0911 shares of XPO Logistics and if it is below $23.12 per share, the stock portion will be fixed at 0.1298 shares of XPO Logistics for each share of Pacer.
  3. The acquisition of Material Sciences Corporation (MASC) by Zink Acquisition Holdings  for $139 million or $12.75 per share in cash.

Closed Deals:

  1. The acquisition of Innotrac (INOC) by an affiliate of Sterling Partners on January 6, 2014. It took 52 days for this deal to be completed.
  2. The acquisition of Mac-Gray Corp. (TUC) by CSC ServiceWorks on January 9, 2014. It took 86 days for this deal to be completed.
  3. The acquisition of Edwards Group Limited (EVAC) by Atlas Copco Group on January 9, 2014. It took 143 days for this deal to be completed.

Top 10 deals with largest spreads:

Symbol Announced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

Profit Annualized

Profit

WH 02/21/2013 WSP OCTG GROUP Ltd. (N/A) $3.20 $2.25 12/31/2013 42.22% -1185.47%
SYNM 12/17/2013 Renewable Energy Group, Inc. (REGI) $4.05 $3.43 03/31/2014 18.16% 86.07%
HOME 10/23/2013 Cascade Bancorp (CACB) $17.04 $14.89 03/31/2014 14.46% 68.56%
TBOW 12/10/2013 Trunkbow Merger Group Limited (N/A) $1.46 $1.32 03/31/2014 10.61% 50.28%
TWGP 01/06/2014 ACP Re Ltd. (N/A) $3.00 $2.73 06/30/2014 9.89% 21.49%
CAFI 10/10/2013 Huntington Bancshares Incorporated (HBAN) $7.11 $6.75 06/30/2014 5.35% 11.63%
EDS 12/02/2013 Pan Long Company Limited (N/A) $1.78 $1.70 03/31/2014 4.71% 22.31%
ISS 06/06/2013 Mr. Tianwen Liu, the Company’s CEO and the chairman of its Board of Directors, and ChinaAMC Capital Management Limited (N/A) $5.45 $5.21 09/30/2013 4.61% -16.01%
EQU 12/09/2013 Petroflow Energy Corporation (N/A) $5.43 $5.23 03/31/2014 3.82% 18.13%
HCBK 08/27/2012 M&T Bank Corporation (MTB) $9.75 $9.40 01/31/2014 3.70% 74.96%

List of all pending deals:

Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ WH 02/21/2013 WSP OCTG GROUP Ltd. (N/A) All Cash $893.6 million $3.20 $2.25 18,754 12/31/2013 42.22% 0.00%
+ SYNM 12/17/2013 Renewable Energy Group, Inc. (REGI) All Stock N/A $4.05 $3.43 81,687 03/31/2014 18.16% 86.07%
+ HOME 10/23/2013 Cascade Bancorp (CACB) Cash Plus Stock $265.7 million $17.04 $14.89 13,055 03/31/2014 14.46% 68.56%
+ TBOW 12/10/2013 Trunkbow Merger Group Limited (N/A) All Cash N/A $1.46 $1.32 42,040 03/31/2014 10.61% 50.28%
+ TWGP 01/06/2014 ACP Re Ltd. (N/A) All Cash $172.1 $3.00 $2.73 1,885,871 06/30/2014 9.89% 21.49%
+ CAFI 10/10/2013 Huntington Bancshares Incorporated (HBAN) All Stock $97 million $7.11 $6.75 52,278 06/30/2014 5.35% 11.63%
+ EDS 12/02/2013 Pan Long Company Limited (N/A) All Cash $60.1 million $1.78 $1.70 54,981 03/31/2014 4.71% 22.31%
+ ISS 06/06/2013 Mr. Tianwen Liu, the Company’s CEO and the chairman of its Board of Directors, and ChinaAMC Capital Management Limited (N/A) All Cash N/A $5.45 $5.21 46,144 09/30/2013 4.61% 0.00%
+ EQU 12/09/2013 Petroflow Energy Corporation (N/A) All Cash $230 million $5.43 $5.23 371,481 03/31/2014 3.82% 18.13%
+ HCBK 08/27/2012 M&T Bank Corporation (MTB) All Stock $3.7 billion $9.75 $9.40 2,358,254 01/31/2014 3.70% 74.96%
+ HWG 06/05/2013 Hallwood Financial Limited (N/A) All Cash N/A $10.00 $9.68 105 09/30/2013 3.31% 0.00%
+ NTS 10/21/2013 Tower Three Partners LLC (N/A) All Cash $83 million $2.00 $1.94 16,046 03/31/2014 3.09% 14.66%
+ RDA 11/11/2013 Tsinghua Unigroup Ltd. (N/A) All Cash $910 million $18.50 $17.97 141,189 06/30/2014 2.95% 6.41%
+ PACT 10/17/2013 Blackstone (N/A) All Cash $625 million $7.30 $7.11 213,385 03/31/2014 2.67% 12.67%
+ CIS 09/18/2013 Camelot Employee Scheme Inc. (N/A) All Cash N/A $2.05 $2.00 22,440 01/15/2014 2.50% 456.25%
+ CEDU 12/31/2013 ChinaEdu Holdings Limited (“Holdings”) and ChinaEdu Merger Sub Limited (“Merger Sub”) (N/A) All Cash N/A $7.00 $6.83 19,152 06/30/2014 2.49% 5.41%
+ YONG 09/23/2013 Full Alliance International Limited (N/A) All Cash $339 million $6.69 $6.54 907,821 03/31/2014 2.29% 10.87%
+ VIFL 12/06/2013 Sterigenics International LLC (N/A) All Cash N/A $7.23 $7.10 1,380 03/31/2014 1.83% 8.68%
+ NICK 12/18/2013 an indirect wholly-owned subsidiary of Prospect Capital Corporation (“Prospect”) (N/A) All Cash $340 million $16.00 $15.74 28,543 04/30/2014 1.65% 5.63%
+ BCSB 06/14/2013 F.N.B. Corporation (FNB) All Stock $79 million $26.94 $26.50 30,300 12/31/2013 1.65% 0.00%
+ LSI 12/16/2013 Avago Technologies Limited (AVGO) All Cash $6.6 billion $11.15 $10.97 5,878,773 06/30/2014 1.64% 3.56%
+ PACR 01/06/2014 XPO Logistics, Inc. (XPO) All Cash $296 million $9.00 $8.88 830,427 06/30/2014 1.35% 2.94%
+ UNS 12/11/2013 Fortis, Inc. (N/A) All Cash $4.3 billion $60.25 $59.46 343,638 12/31/2014 1.33% 1.38%
+ BRD 12/16/2013 Primero Mining Corp. (PPP) All Stock N/A $0.81 $0.799 197,726 03/31/2014 1.19% 5.64%
+ KFN 12/16/2013 Kohlberg Kravis Roberts & Co. L.P. (KKR) All Stock $2.6 billion $13.23 $13.08 1,634,710 06/30/2014 1.18% 2.57%
+ PVR 10/10/2013 Regency Energy Partners LP (RGP) Cash Plus Stock $5.6 billion $26.24 $25.94 438,590 03/31/2014 1.15% 5.45%
+ UBNK 11/15/2013 Rockville Financial Inc. (RCKB) All Stock $369 million $19.28 $19.08 51,317 06/30/2014 1.04% 2.26%
+ JNY 12/19/2013 Sycamore Partners (N/A) All Cash $1.2 billion $15.00 $14.85 2,579,385 06/30/2014 1.01% 2.19%
+ TOFC 09/10/2013 Old National Bancorp. (ONB) Cash Plus Stock $107.7 million $24.29 $24.12 2,523 03/31/2014 0.72% 3.42%
+ CGX 10/24/2013 R.R. Donnelley & Sons Company (RRD) Cash Plus Stock $620 million $67.61 $67.14 75,651 03/31/2014 0.70% 3.31%
+ CSE 07/22/2013 PacWest Bancorp (PACW) Cash Plus Stock $2.3 billion $14.85 $14.75 703,949 03/31/2014 0.66% 3.14%
+ VTNC 12/30/2013 TransForce Inc. (N/A) All Cash $136 million $6.50 $6.46 407,676 03/15/2014 0.62% 3.71%
+ WBCO 10/23/2013 Heritage Financial Corp. (HFWA) Cash Plus Stock $265.1 million $19.12 $19.01 35,128 06/30/2014 0.56% 1.22%
+ BRE 12/19/2013 Essex Property Trust Inc. (ESS) Cash Plus Stock $15.4 billion $57.21 $56.99 437,687 03/31/2014 0.39% 1.83%
+ DRCO 12/23/2013 Engility Holdings, Inc. (EGL) All Cash $120.9 million $11.50 $11.46 46,225 03/31/2014 0.35% 1.65%
+ HITK 08/27/2013 Akorn, Inc. (AKRX) All Cash $640 million $43.50 $43.35 40,243 03/31/2014 0.35% 1.64%
+ ASIA 05/13/2013 CITIC Capital Partners (N/A) All Cash $890 million $12.00 $11.96 266,010 12/31/2013 0.33% 0.00%
+ VCBI 01/30/2013 United Bankshares Inc. (UBSI) All Stock $490.6 million $16.42 $16.38 43,304 01/31/2014 0.27% 5.44%
+ STSA 09/11/2013 Umpqua Holdings Corporation (UMPQ) Cash Plus Stock $2.0 billion $33.43 $33.34 115,469 06/30/2014 0.26% 0.57%
+ FLOW 09/25/2013 American Industrial Partners (N/A) All Cash $200 million $4.05 $4.04 181,347 01/31/2014 0.25% 5.02%
+ MASC 01/09/2014 Zink Acquisition Holdings Inc. (N/A) All Cash $139 million $12.75 $12.72 242,459 05/15/2014 0.24% 0.71%
+ VPHM 11/11/2013 Shire plc (SHPG) All Cash $4.2 billion $50.00 $49.90 333,975 03/31/2014 0.20% 0.95%
+ LIFE 04/15/2013 Thermo Fisher Scientific, Inc. (TMO) All Cash $13.6 billion $76.00 $75.86 942,827 01/31/2014 0.18% 3.74%
+ ANLY 08/28/2013 ACS Motion Control, Ltd. (ACSEF) All Cash $35 million $6.45 $6.44 N/A 12/31/2013 0.16% 0.00%
+ CCIX 12/20/2013 Southwire Company (N/A) All Cash $786 million $26.25 $26.21 112,979 03/31/2014 0.15% 0.72%
+ ANEN 11/04/2013 an affiliate of The Veritas Capital Fund IV, L.P. (N/A) All Cash $381 million $28.00 $27.96 10,392 03/31/2014 0.14% 0.68%
+ ICH 10/28/2013 RCS Capital Corporation (N/A) All Cash $52.5 million $7.25 $7.24 14,600 03/31/2014 0.14% 0.65%
+ COLE 10/23/2013 American Realty Capital Properties, Inc. (ARCP) All Stock $11.2 billion $14.21 $14.19 10,395,452 06/30/2014 0.12% 0.27%
+ GENT 12/19/2013 Jazz Pharmaceuticals Public Limited Company (JAZZ) All Cash $1 billion $57.00 $56.94 395,342 03/31/2014 0.11% 0.50%
+ ZOLT 09/26/2013 Toray Industries, Inc. (N/A) All Cash $584 million $16.75 $16.74 76,367 01/31/2014 0.06% 1.21%
+ XRTX 12/23/2013 Seagate Technology Public Limited Company (STX) All Cash $374 million $13.25 $13.25 259,183 06/30/2014 0.00% 0.00%
+ HTSI 07/09/2013 The Kroger Co. (KR) All Cash $2.5 billion $49.38 $49.39 273,060 12/31/2013 -0.02% 0.00%
+ VCI 12/18/2013 Harland Clarke Holdings Corp. (N/A) All Cash $1.84 billion $34.04 $34.05 562,728 03/31/2014 -0.03% -0.14%
+ GIVN 12/08/2013 Covidien plc (COV) All Cash $860 million $30.00 $30.06 40,931 03/31/2014 -0.20% -0.95%
+ FBMI 08/15/2013 Mercantile Bank Corp. (MBWM) Cash Plus Stock $151.5 million $19.16 $19.21 7,157 03/31/2014 -0.26% -1.23%
+ SLTM 12/16/2013 Valeant Pharmaceuticals International, Inc. (VRX) All Cash $250 million $2.92 $2.93 654,440 03/31/2014 -0.34% -1.62%
+ MKTG 12/20/2013 Oracle Corporation (ORCL) All Cash $1.5 billion $27.00 $27.10 636,824 06/30/2014 -0.37% -0.80%
+ TAYC 07/15/2013 MB Financial Inc. (MBFI) Cash Plus Stock $680 million $24.36 $24.46 31,718 06/30/2014 -0.42% -0.92%
+ TFCO 12/20/2013 Tufco Holdings, LLC (N/A) All Cash N/A $6.07 $6.10 21,000 03/31/2014 -0.49% -2.33%
+ HPOL 11/25/2013 Nielsen Holdings N.V. (NLSN) All Cash $117 million $2.00 $2.01 86,518 03/31/2014 -0.50% -2.36%
+ CRTX 09/16/2013 Chiesi Farmaceutici (N/A) All Cash N/A $9.50 $9.62 19,801 03/31/2014 -1.25% -5.91%
+ LEAP 07/12/2013 AT&T, Inc. (T) All Cash $1.19 billion $15.00 $17.45 260,743 03/31/2014 -14.04% -66.55%
+ PATH 12/16/2013 Endo Health Solutions Inc. (ENDP) All Cash $105 million $2.85 $4.33 334,527 01/31/2014 -34.18% -693.10%

Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria




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