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:
- The acquisition of The Habit Restaurants (HABT) by YUM! Brands (YUM) for $375 million or $14.00 per share in cash.
- The acquisition of Dermira (DERM) by Eli Lilly and Company (LLY) for $1.1 billion or $18.75 per share in cash.
- 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:
- On January 6, 2020, shareholders of Fitbit (FIT) approved the company’s merger with Google LLC at a special meeting of shareholders.
- On January 7, 2020, Tech Data Corporation (TECD) announced that it will hold a special meeting of its stockholders on February 12, 2020.
- 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.
- On January 9, 2020, Anixter International (AXE) announced that its Board of Directors determined that an offer from WESCO International (WCC) constitutes a “Superior Company Proposal”.
- 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.
- 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.
- On January 10, 2020, The European Commission approved, under the EU Merger Regulation, the proposed acquisition of Allergan (AGN) by AbbVie (ABBV).
Closed Deals:
- 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.
- The acquisition of Wesco Aircraft Holdings (WAIR) by Platinum Equity on January 9, 2020. It took 153 days for this deal to be completed.
- 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:
Closing
Price |
|---|
| 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 and Plus 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
