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Merger Arbitrage Mondays – January 13, 2014

  • January 13, 2014

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 20149
Total Number of Pending Deals
Cash Deals44
Stock Deals9
Stock & Cash Deals10
Total Number of Pending Deals63
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:

SymbolAnnounced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

ProfitAnnualized

Profit

WH02/21/2013WSP OCTG GROUP Ltd. (N/A)$3.20$2.2512/31/201342.22%-1185.47%
SYNM12/17/2013Renewable Energy Group, Inc. (REGI)$4.05$3.4303/31/201418.16%86.07%
HOME10/23/2013Cascade Bancorp (CACB)$17.04$14.8903/31/201414.46%68.56%
TBOW12/10/2013Trunkbow Merger Group Limited (N/A)$1.46$1.3203/31/201410.61%50.28%
TWGP01/06/2014ACP Re Ltd. (N/A)$3.00$2.7306/30/20149.89%21.49%
CAFI10/10/2013Huntington Bancshares Incorporated (HBAN)$7.11$6.7506/30/20145.35%11.63%
EDS12/02/2013Pan Long Company Limited (N/A)$1.78$1.7003/31/20144.71%22.31%
ISS06/06/2013Mr. Tianwen Liu, the Company’s CEO and the chairman of its Board of Directors, and ChinaAMC Capital Management Limited (N/A)$5.45$5.2109/30/20134.61%-16.01%
EQU12/09/2013Petroflow Energy Corporation (N/A)$5.43$5.2303/31/20143.82%18.13%
HCBK08/27/2012M&T Bank Corporation (MTB)$9.75$9.4001/31/20143.70%74.96%

List of all pending deals:

The list of all pending deals is only available to InsideArbitrage Premium and Plus members.


SymbolAnnounced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

VolumeClosing

Date

ProfitAnnu.

Profit

+WH02/21/2013WSP OCTG GROUP Ltd. (N/A)All Cash$893.6 million$3.20$2.2518,75412/31/201342.22%0.00%
+SYNM12/17/2013Renewable Energy Group, Inc. (REGI)All StockN/A$4.05$3.4381,68703/31/201418.16%86.07%
+HOME10/23/2013Cascade Bancorp (CACB)Cash Plus Stock$265.7 million$17.04$14.8913,05503/31/201414.46%68.56%
+TBOW12/10/2013Trunkbow Merger Group Limited (N/A)All CashN/A$1.46$1.3242,04003/31/201410.61%50.28%
+TWGP01/06/2014ACP Re Ltd. (N/A)All Cash$172.1$3.00$2.731,885,87106/30/20149.89%21.49%
+CAFI10/10/2013Huntington Bancshares Incorporated (HBAN)All Stock$97 million$7.11$6.7552,27806/30/20145.35%11.63%
+EDS12/02/2013Pan Long Company Limited (N/A)All Cash$60.1 million$1.78$1.7054,98103/31/20144.71%22.31%
+ISS06/06/2013Mr. Tianwen Liu, the Company’s CEO and the chairman of its Board of Directors, and ChinaAMC Capital Management Limited (N/A)All CashN/A$5.45$5.2146,14409/30/20134.61%0.00%
+EQU12/09/2013Petroflow Energy Corporation (N/A)All Cash$230 million$5.43$5.23371,48103/31/20143.82%18.13%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$9.75$9.402,358,25401/31/20143.70%74.96%
+HWG06/05/2013Hallwood Financial Limited (N/A)All CashN/A$10.00$9.6810509/30/20133.31%0.00%
+NTS10/21/2013Tower Three Partners LLC (N/A)All Cash$83 million$2.00$1.9416,04603/31/20143.09%14.66%
+RDA11/11/2013Tsinghua Unigroup Ltd. (N/A)All Cash$910 million$18.50$17.97141,18906/30/20142.95%6.41%
+PACT10/17/2013Blackstone (N/A)All Cash$625 million$7.30$7.11213,38503/31/20142.67%12.67%
+CIS09/18/2013Camelot Employee Scheme Inc. (N/A)All CashN/A$2.05$2.0022,44001/15/20142.50%456.25%
+CEDU12/31/2013ChinaEdu Holdings Limited (“Holdings”) and ChinaEdu Merger Sub Limited (“Merger Sub”) (N/A)All CashN/A$7.00$6.8319,15206/30/20142.49%5.41%
+YONG09/23/2013Full Alliance International Limited (N/A)All Cash$339 million$6.69$6.54907,82103/31/20142.29%10.87%
+VIFL12/06/2013Sterigenics International LLC (N/A)All CashN/A$7.23$7.101,38003/31/20141.83%8.68%
+NICK12/18/2013an indirect wholly-owned subsidiary of Prospect Capital Corporation (“Prospect”) (N/A)All Cash$340 million$16.00$15.7428,54304/30/20141.65%5.63%
+BCSB06/14/2013F.N.B. Corporation (FNB)All Stock$79 million$26.94$26.5030,30012/31/20131.65%0.00%
+LSI12/16/2013Avago Technologies Limited (AVGO)All Cash$6.6 billion$11.15$10.975,878,77306/30/20141.64%3.56%
+PACR01/06/2014XPO Logistics, Inc. (XPO)All Cash$296 million$9.00$8.88830,42706/30/20141.35%2.94%
+UNS12/11/2013Fortis, Inc. (N/A)All Cash$4.3 billion$60.25$59.46343,63812/31/20141.33%1.38%
+BRD12/16/2013Primero Mining Corp. (PPP)All StockN/A$0.81$0.799197,72603/31/20141.19%5.64%
+KFN12/16/2013Kohlberg Kravis Roberts & Co. L.P. (KKR)All Stock$2.6 billion$13.23$13.081,634,71006/30/20141.18%2.57%
+PVR10/10/2013Regency Energy Partners LP (RGP)Cash Plus Stock$5.6 billion$26.24$25.94438,59003/31/20141.15%5.45%
+UBNK11/15/2013Rockville Financial Inc. (RCKB)All Stock$369 million$19.28$19.0851,31706/30/20141.04%2.26%
+JNY12/19/2013Sycamore Partners (N/A)All Cash$1.2 billion$15.00$14.852,579,38506/30/20141.01%2.19%
+TOFC09/10/2013Old National Bancorp. (ONB)Cash Plus Stock$107.7 million$24.29$24.122,52303/31/20140.72%3.42%
+CGX10/24/2013R.R. Donnelley & Sons Company (RRD)Cash Plus Stock$620 million$67.61$67.1475,65103/31/20140.70%3.31%
+CSE07/22/2013PacWest Bancorp (PACW)Cash Plus Stock$2.3 billion$14.85$14.75703,94903/31/20140.66%3.14%
+VTNC12/30/2013TransForce Inc. (N/A)All Cash$136 million$6.50$6.46407,67603/15/20140.62%3.71%
+WBCO10/23/2013Heritage Financial Corp. (HFWA)Cash Plus Stock$265.1 million$19.12$19.0135,12806/30/20140.56%1.22%
+BRE12/19/2013Essex Property Trust Inc. (ESS)Cash Plus Stock$15.4 billion$57.21$56.99437,68703/31/20140.39%1.83%
+DRCO12/23/2013Engility Holdings, Inc. (EGL)All Cash$120.9 million$11.50$11.4646,22503/31/20140.35%1.65%
+HITK08/27/2013Akorn, Inc. (AKRX)All Cash$640 million$43.50$43.3540,24303/31/20140.35%1.64%
+ASIA05/13/2013CITIC Capital Partners (N/A)All Cash$890 million$12.00$11.96266,01012/31/20130.33%0.00%
+VCBI01/30/2013United Bankshares Inc. (UBSI)All Stock$490.6 million$16.42$16.3843,30401/31/20140.27%5.44%
+STSA09/11/2013Umpqua Holdings Corporation (UMPQ)Cash Plus Stock$2.0 billion$33.43$33.34115,46906/30/20140.26%0.57%
+FLOW09/25/2013American Industrial Partners (N/A)All Cash$200 million$4.05$4.04181,34701/31/20140.25%5.02%
+MASC01/09/2014Zink Acquisition Holdings Inc. (N/A)All Cash$139 million$12.75$12.72242,45905/15/20140.24%0.71%
+VPHM11/11/2013Shire plc (SHPG)All Cash$4.2 billion$50.00$49.90333,97503/31/20140.20%0.95%
+LIFE04/15/2013Thermo Fisher Scientific, Inc. (TMO)All Cash$13.6 billion$76.00$75.86942,82701/31/20140.18%3.74%
+ANLY08/28/2013ACS Motion Control, Ltd. (ACSEF)All Cash$35 million$6.45$6.44N/A12/31/20130.16%0.00%
+CCIX12/20/2013Southwire Company (N/A)All Cash$786 million$26.25$26.21112,97903/31/20140.15%0.72%
+ANEN11/04/2013an affiliate of The Veritas Capital Fund IV, L.P. (N/A)All Cash$381 million$28.00$27.9610,39203/31/20140.14%0.68%
+ICH10/28/2013RCS Capital Corporation (N/A)All Cash$52.5 million$7.25$7.2414,60003/31/20140.14%0.65%
+COLE10/23/2013American Realty Capital Properties, Inc. (ARCP)All Stock$11.2 billion$14.21$14.1910,395,45206/30/20140.12%0.27%
+GENT12/19/2013Jazz Pharmaceuticals Public Limited Company (JAZZ)All Cash$1 billion$57.00$56.94395,34203/31/20140.11%0.50%
+ZOLT09/26/2013Toray Industries, Inc. (N/A)All Cash$584 million$16.75$16.7476,36701/31/20140.06%1.21%
+XRTX12/23/2013Seagate Technology Public Limited Company (STX)All Cash$374 million$13.25$13.25259,18306/30/20140.00%0.00%
+HTSI07/09/2013The Kroger Co. (KR)All Cash$2.5 billion$49.38$49.39273,06012/31/2013-0.02%0.00%
+VCI12/18/2013Harland Clarke Holdings Corp. (N/A)All Cash$1.84 billion$34.04$34.05562,72803/31/2014-0.03%-0.14%
+GIVN12/08/2013Covidien plc (COV)All Cash$860 million$30.00$30.0640,93103/31/2014-0.20%-0.95%
+FBMI08/15/2013Mercantile Bank Corp. (MBWM)Cash Plus Stock$151.5 million$19.16$19.217,15703/31/2014-0.26%-1.23%
+SLTM12/16/2013Valeant Pharmaceuticals International, Inc. (VRX)All Cash$250 million$2.92$2.93654,44003/31/2014-0.34%-1.62%
+MKTG12/20/2013Oracle Corporation (ORCL)All Cash$1.5 billion$27.00$27.10636,82406/30/2014-0.37%-0.80%
+TAYC07/15/2013MB Financial Inc. (MBFI)Cash Plus Stock$680 million$24.36$24.4631,71806/30/2014-0.42%-0.92%
+TFCO12/20/2013Tufco Holdings, LLC (N/A)All CashN/A$6.07$6.1021,00003/31/2014-0.49%-2.33%
+HPOL11/25/2013Nielsen Holdings N.V. (NLSN)All Cash$117 million$2.00$2.0186,51803/31/2014-0.50%-2.36%
+CRTX09/16/2013Chiesi Farmaceutici (N/A)All CashN/A$9.50$9.6219,80103/31/2014-1.25%-5.91%
+LEAP07/12/2013AT&T, Inc. (T)All Cash$1.19 billion$15.00$17.45260,74303/31/2014-14.04%-66.55%
+PATH12/16/2013Endo Health Solutions Inc. (ENDP)All Cash$105 million$2.85$4.33334,52701/31/2014-34.18%-693.10%

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