Merger Arbitrage Mondays – February 26, 2018
Merger activity increased last week with three new deals announced, one pending deal closing, one deal priced higher and one deal failing. You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.
There was one new deal announced in the Deals in the Works section.
Deal Statistics:
New Deals:
- The acquisition of Rite Aid Corporation (RAD) by Albertsons Companies for $5.98 billion. Under the terms of the agreement, Ride Aid shareholders would receive 0.10 of Parent common stock plus either (i) an amount in cash equal to $0.1832 per share or (ii) 0.0079 share of the Parent common stock. Using these options we have calculated that one share of the combined company is estimated to be worth $23.16. Hence each Rite Aid share is worth an estimated $2.499. We have added this deal as a “Special Conditions” deal. I posted a group of tweets about this merger last week and hope to expand it into a full article this week.
- The acquisition of Fogo de Chao (FOGO) by Rhône Capital for $560 million or $15.75 per share in cash.
- The acquisition of Blue Buffalo Pet Products (BUFF) by General Mills (GIS) for $8 billion or $40.00 per share in cash. At 22 times adjusted EBITDA, General Mills is paying up for growth.
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