Merger Arbitrage Mondays – Hexcel Corporation and Woodward combine in a merger of equals

Merger activity increased with three new deals announced, and three deals closing. You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.

There were three new deals announced in the Deals in the Works section.

Deal Statistics:

Total Number of Deals Closed in 2020 7
Total Number of Deals Not Completed in 2020 1
Total Number of Pending Deals
Cash Deals 43
Stock Deals 20
Stock & Cash Deals 4
Special Conditions 5
Total Number of Pending Deals 72
Aggregate Deal Consideration $414.93 billion

New Deals:

  1. The acquisition of The Habit Restaurants (HABT) by YUM! Brands (YUM) for $375 million or $14.00 per share in cash.
  2. The acquisition of Dermira (DERM) by Eli Lilly and Company (LLY) for $1.1 billion or $18.75 per share in cash.
  3. The merger of equals between Hexcel Corporation (HXL) and Woodward (WWD) in an all stock deal. Under the terms of the agreement, Hexcel shareholders will receive a fixed exchange ratio of 0.625 shares of Woodward common stock for each share of Hexcel common stock.

Deal Updates:

  1. On January 6, 2020, shareholders of Fitbit (FITapproved the company’s merger with Google LLC at a special meeting of shareholders.
  2. On January 7, 2020, Tech Data Corporation (TECD) announced that it will hold a special meeting of its stockholders on February 12, 2020.
  3. On January 7, 2020, the Federal Trade Commission (FTC) granted early termination of the required waiting period under the Hart-Scott-Rodino Act with respect to the acquisition of LogMeIn (LOGM) by Francisco Partners.
  4. On January 9, 2020, Anixter International (AXE) announced that its Board of Directors determined that an offer from WESCO International (WCCconstitutes a “Superior Company Proposal”.
  5. On January 9, 2020, Instructure (INST) announced the expiration of the 35-day “go-shop” period pursuant to its previously announced definitive merger agreement with Thoma Bravo, LLC.
  6. On January 10, 2020, Teekay Offshore Partners (TOO) announced that it has notified the New York Stock Exchange that it anticipates that the merger will close on January 22, 2020 after the closing of markets.
  7. On January 10, 2020, The European Commission approved, under the EU Merger Regulation, the proposed acquisition of Allergan (AGN) by AbbVie (ABBV).

Closed Deals:

  1. The acquisition of The Medicines Company (MDCO) by Novartis AG (NVS) on January 6, 2020. It took 43 days for this deal to be completed.
  2. The acquisition of Wesco Aircraft Holdings (WAIR) by Platinum Equity on January 9, 2020. It took 153 days for this deal to be completed.
  3. The acquisition of Jagged Peak Energy (JAG) by Parsley Energy (PE) on January 10, 2020. It took 88 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
S 04/29/2018 T-Mobile US, Inc. (TMUS) $8.10 $4.88 01/31/2020 66.03% 1338.93%
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $4.4 03/31/2020 23.41% 109.54%
ABDC 08/13/2019 Crescent Capital BDC, Inc. (N/A) $11.02 $9.18 03/31/2020 20.04% 93.79%
FIT 11/01/2019 Google LLC (N/A) $7.35 $6.56 06/30/2020 12.04% 26.01%
LACQ 12/30/2019 GTWY Holdings Limited (N/A) $11.50 $10.43 06/30/2020 10.26% 22.16%
TSG 10/02/2019 Flutter Entertainment PLC (PDYPF) $28.39 $25.81 09/30/2020 9.99% 13.97%
MLNX 03/11/2019 NVIDIA Corporation (NVDA) $125.00 $118.89 03/31/2020 5.14% 24.05%
HXL 01/12/2020 Woodward, Inc. (WWD) $76.23 $72.91 09/30/2020 4.55% 6.36%
FSBC 12/19/2019 Evans Bancorp, Inc. (EVBN) $17.80 $17.18 06/30/2020 3.61% 7.79%
AMTD 11/25/2019 The Charles Schwab Corporation (SCHW) $51.80 $50.005 12/31/2020 3.59% 3.71%

List of all pending deals:

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

Disclaimer: I hold long positions in Sprint (S) and Mellanox Technologies (MLNX). Please do your own due diligence before buying or selling any securities mentioned in this article. We do not warrant the completeness or accuracy of the content or data provided in this article.

Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria or follow me on Twitter@asifsuria

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