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Merger Arbitrage Mondays – April 21, 2014

  • April 21, 2014

Merger Activity declined last week with one new merger announced, and two 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 201449
Total Number of Pending Deals
Cash Deals40
Stock Deals14
Stock & Cash Deals12
Total Number of Pending Deals66
Total Deal Size$235.33 billion

New Deals:

  1. The acquisition of FedFirst Financial (FFCO) by CB Financial Services (CBFV) for $54.5 million in an all stock deal. Under the terms of the agreement, shareholders of FedFirst Financial will entitled to elect to receive $23.00 in cash or shares of CB common stock based on a fixed exchange ratio of 1.1590 shares of CB common stock for each share of FedFirst common stock, subject to proration to ensure that at closing 65% of the outstanding shares of FedFirst common stock are exchanged for shares of CB common stock and the remaining 35% are exchanged for cash.

Deal Updates:

  1. On April 14, 2014, Safeway (SWY), completed the distribution to its stockholders of 37,838,709 shares of Class B common stock of Blackhawk Networks Holdings, Inc. owned by Safeway. After the completion of the distribution, Safeway no longer owns any shares of Class B common stock of Blackhawk. After this spin-off, the adjusted purchase price for Safeway is $36.15 ($32.50 in cash and $3.65 in CVRs).

Closed Deals:

  1. The acquisition of Trunkbow International Holdings (TBOW) by Trunkbow Merger Group Limited on April 14, 2014. It took 125 days for this deal to be completed.
  2. The acquisition of Hi-Tech Pharmacal (HITK) by Akorn (AKRX) on April 17, 2014. It took 233 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

LIN03/22/2014Media General, Inc. (MEG)$27.82$23.7503/31/201517.14%18.18%
TWGP01/06/2014ACP Re Ltd. (N/A)$3.00$2.5806/30/201416.28%84.88%
WH02/21/2013WSP OCTG GROUP Ltd. (N/A)$3.20$2.8005/31/201414.29%130.36%
SYNM12/17/2013Renewable Energy Group, Inc. (REGI)$4.53$3.9803/31/201413.79%-239.71%
EQU12/09/2013Petroflow Energy Corporation (N/A)$5.43$4.8003/31/201413.13%-228.13%
FFCO04/14/2014CB Financial Services, Inc. (CBFV)$24.05$21.8011/15/201410.32%18.11%
QCOR04/07/2014Mallinckrodt plc (MNK)$84.07$76.9509/30/20149.25%20.85%
EDS12/02/2013Pan Long Company Limited (N/A)$1.78$1.6503/31/20147.88%-136.94%
HOME10/23/2013Cascade Bancorp (CACB)$16.51$15.3803/31/20147.33%-127.33%
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$5.1109/30/20136.65%-11.96%

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

+LIN03/22/2014Media General, Inc. (MEG)All Cash$2.6 billion$27.82$23.7562,52503/31/201517.14%18.18%
+TWGP01/06/2014ACP Re Ltd. (N/A)All Cash$172.1$3.00$2.58338,35806/30/201416.28%84.88%
+WH02/21/2013WSP OCTG GROUP Ltd. (N/A)All Cash$893.6 million$3.20$2.809,14205/31/201414.29%130.36%
+SYNM12/17/2013Renewable Energy Group, Inc. (REGI)All StockN/A$4.53$3.98116,31703/31/201413.79%0.00%
+EQU12/09/2013Petroflow Energy Corporation (N/A)All Cash$230 million$5.43$4.80409,21403/31/201413.13%0.00%
+FFCO04/14/2014CB Financial Services, Inc. (CBFV)All Stock54.5 million$24.05$21.8010,41511/15/201410.32%18.11%
+QCOR04/07/2014Mallinckrodt plc (MNK)Cash Plus Stock$5.6 billion$84.07$76.952,178,80409/30/20149.25%20.85%
+EDS12/02/2013Pan Long Company Limited (N/A)All Cash$60.1 million$1.78$1.6549,00703/31/20147.88%0.00%
+HOME10/23/2013Cascade Bancorp (CACB)Cash Plus Stock$265.7 million$16.51$15.3821,33603/31/20147.33%0.00%
+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$5.1148,25209/30/20136.65%0.00%
+HWG06/05/2013Hallwood Financial Limited (N/A)All CashN/A$13.00$12.196,20004/30/20146.64%269.48%
+ICH10/28/2013RCS Capital Corporation (N/A)All Cash$52.5 million$7.25$6.8412,11803/31/20145.99%0.00%
+SWY03/06/2014AB Acquisition LLC (N/A)All CashN/A$36.15$34.123,097,90512/31/20145.95%8.55%
+NINE01/29/2014Ninetowns Holdings Limited (“Parent”) (N/A)All CashN/A$1.80$1.72N/A06/30/20144.65%24.25%
+TWC02/13/2014Comcast Corporation (CMCSA)All Stock$45.2 billion$141.16$135.332,283,25212/31/20144.31%6.19%
+OBAF04/08/2014F.N.B. Corporation (FNB)All Stock$94 million$22.92$21.98148,54309/30/20144.28%9.65%
+RDA11/11/2013Tsinghua Unigroup Ltd. (N/A)All Cash$910 million$18.50$17.78505,46506/30/20144.05%21.12%
+HCBK08/27/2012M&T Bank Corporation (MTB)All Stock$3.7 billion$10.21$9.902,240,55012/31/20143.16%4.54%
+FBMI08/15/2013Mercantile Bank Corp. (MBWM)Cash Plus Stock$151.5 million$18.74$18.189,81606/30/20143.08%16.06%
+NDZ03/28/2014Sterigenics (N/A)All Cash$727 million$11.75$11.43386,79712/31/20142.80%4.02%
+GA03/16/2014Giant Investment Limited (�Parent�) and Giant Merger Limited (N/A)All Cash$3 billion$12.00$11.69705,72212/31/20142.65%3.81%
+CHC01/13/2014CPT Wyndham Holdings Ltd. (N/A)All CashN/A$3.51$3.4230,57506/30/20142.63%13.72%
+JFBI01/23/2014HomeTrust Bancshares, Inc. (HTBI)All Cash$51.2 million$8.00$7.832,35506/30/20142.17%11.32%
+HAST03/17/2014Affiliate of Joel Weinshanker (N/A)All Cash$21.4 million$3.00$2.946,10006/30/20142.04%10.64%
+YONG04/09/2014Full Alliance International Limited (N/A)All Cash$339 million$7.10$6.965422,49709/30/20141.94%4.37%
+FRX02/18/2014Actavis plc (ACT)Cash Plus Stock$25 billion$91.30$89.581,095,92106/30/20141.92%10.00%
+AMAP04/11/2014affiliate of Alibaba Group Holding Limited (“Alibaba”) (N/A)All Cash$1.5 billion$21.00$20.65840,35009/30/20141.69%3.82%
+FWLT02/13/2014AMEC PLC (AMCBF)Cash Plus Stock$3.3 billion$34.12$33.57326,69712/31/20141.64%2.36%
+NTS10/21/2013Tower Three Partners LLC (N/A)All Cash$83 million$2.00$1.9723,32103/31/20141.52%0.00%
+NED04/02/2014Rainbow Education Holding Limited (N/A)All CashN/A$2.85$2.8134,95908/15/20141.42%4.48%
+NICK12/18/2013an indirect wholly-owned subsidiary of Prospect Capital Corporation (“Prospect”) (N/A)All Cash$340 million$16.00$15.7813,26204/30/20141.39%56.54%
+TSH01/13/2014IberiaBank Corp. (IBKC)All Stock$161 million$78.25$77.492,45006/30/20140.98%5.11%
+JOSB03/11/2014The Men’s Wearhouse, Inc. (MW)All Cash$1.8 billion$65.00$64.45795,39106/30/20140.85%4.45%
+DLLR04/02/2014affiliate of Lone Star Funds (N/A)All Cash$1.3 billion$9.50$9.421,286,80209/30/20140.85%1.91%
+ESC02/20/2014Brookdale Senior Living Inc. (BKD)All Stock$2.8 billion$30.15$29.90442,19909/30/20140.85%1.91%
+EPL03/12/2014Energy XXI (Bermuda) Limited (EXXI)Cash Plus Stock$2.3 billion$39.10$38.781,738,68606/30/20140.82%4.27%
+NOVB01/21/2014TriCo Bancshares (TCBK)All Stock$178.4 million$23.04$22.8512,16206/30/20140.81%4.23%
+CEDU12/31/2013ChinaEdu Holdings Limited (“Holdings”) and ChinaEdu Merger Sub Limited (“Merger Sub”) (N/A)All CashN/A$7.00$6.951,02806/30/20140.72%3.75%
+SWS04/01/2014Hilltop Holdings Inc. (HTH)Cash Plus Stock$260 million$7.89$7.8466,06412/31/20140.58%0.83%
+LSI12/16/2013Avago Technologies Limited (AVGO)All Cash$6.6 billion$11.15$11.093,522,53206/30/20140.54%2.82%
+PACR01/06/2014XPO Logistics, Inc. (XPO)All Cash$296 million$9.00$8.96N/A06/30/20140.45%2.33%
+UBNK11/15/2013Rockville Financial Inc. (RCKB)All Stock$369 million$18.13$18.0650,26806/30/20140.41%2.12%
+STSA09/11/2013Umpqua Holdings Corporation (UMPQ)Cash Plus Stock$2.0 billion$33.23$33.102,219,55806/30/20140.38%2.00%
+BEAM01/13/2014Suntory Holdings Limited (N/A)All Cash$16 billion$83.50$83.273,972,70006/30/20140.28%1.44%
+SGK03/17/2014Matthews International Corporation (MATW)Cash Plus Stock$577 million$20.47$20.42166,45909/30/20140.23%0.52%
+UNS12/11/2013Fortis, Inc. (N/A)All Cash$4.3 billion$60.25$60.13177,81912/31/20140.20%0.29%
+KFN12/16/2013Kohlberg Kravis Roberts & Co. L.P. (KKR)All Stock$2.6 billion$11.76$11.74694,41606/30/20140.18%0.91%
+ANLY08/28/2013ACS Motion Control, Ltd. (ACSEF)All Cash$35 million$6.45$6.44N/A12/31/20130.16%0.00%
+MKTG12/20/2013Oracle Corporation (ORCL)All Cash$1.5 billion$27.00$26.98N/A06/30/20140.07%0.39%
+CNOB01/21/2014Center Bancorp, Inc. (CNBC)All Stock$243 million$49.89$49.863,08409/30/20140.07%0.15%
+VOCS04/07/2014GTCR Valor Merger Sub, Inc., an affiliate of GTCR LLC (N/A)All Cash$446.5 million$18.00$17.99505,93206/30/20140.06%0.29%
+ATMI02/04/2014Entegris, Inc. (ENTG)All Cash$1.15 billion$34.00$33.99302,41306/30/20140.03%0.15%
+TQNT02/24/2014RF Micro Devices Inc. (RFMD)All Stock$1.6 billion$13.18$13.181,470,22212/31/20140.02%0.02%
+TXI01/28/2014Martin Marietta Materials Inc. (MLM)All Stock$2.7 billion$87.89$87.87147,13706/30/20140.02%0.09%
+ACCL01/30/2014Dassault Syst�mes (N/A)All Cash$750 million$12.50$12.50157,16906/30/20140.00%0.00%
+ACO03/06/2014Minerals Technologies Inc. (MTX)All Cash$1.7 billion$45.75$45.75306,41005/02/20140.00%0.00%
+ZIGO04/11/2014AMETEK, Inc. (AME)All Cash$280 million$19.25$19.25405,99506/30/20140.00%0.00%
+WBCO10/23/2013Heritage Financial Corp. (HFWA)Cash Plus Stock$265.1 million$17.69$17.7010,41606/30/2014-0.04%-0.20%
+TOFC09/10/2013Old National Bancorp. (ONB)Cash Plus Stock$107.7 million$23.89$23.901,65203/31/2014-0.06%1.02%
+ZLC02/19/2014Signet Jewelers Limited (SIG)All Cash$1.4 billion$21.00$21.04892,52306/30/2014-0.19%-0.99%
+LCAV02/13/2014PhotoMedex, Inc. (PHMD)All Cash$106.4 million$5.37$5.40132,57206/30/2014-0.56%-2.90%
+COA02/27/2014Essilor International (N/A)All Cash$430 million$11.21$11.2890,40206/30/2014-0.62%-3.24%
+TAYC07/15/2013MB Financial Inc. (MBFI)Cash Plus Stock$680 million$22.91$23.0632,62206/30/2014-0.65%-3.40%
+ARTC02/03/2014Smith & Nephew (N/A)All Cash$1.7 billion$48.25$48.61345,09706/30/2014-0.74%-3.86%
+VSB01/27/2014Yadkin Financial Corporation (YDKN)All Stock$299 million$6.09$6.1812,38106/30/2014-1.50%-7.80%
+CHDX02/17/2014a buyer consortium (the “Buyer Consortium”) of an affiliate of TPG (together with its affiliates, “TPG”), an affiliate of Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (“Fosun”), and Ms. Roberta Lipson, the CEO of the Company (N/A)All Cash$369 million$19.50$22.9445,01112/31/2014-15.00%-21.55%

Voluntary Disclosure: I hold a long position in Safeway (SWY).

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