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Merger Arbitrage Mondays – Italy’s Ali Group Bids $3.3 Billion for Welbilt (WBT)

  • May 31, 2021

Merger activity increased last week with four new deals announced and five deals completed. There were 14 deals announced in the month of May with a total deal value of over $60 billion. This was a significant decline from April, which had 24 new deals with a total value of over $114 billion.

The number of SPAC IPOs and SPAC Business Combinations announced in May increased slightly when compared to the previous month.

The saga of bidding wars continued last week with Italy’s Ali Group bidding $3.3 billion for Welbilt (WBT) on Friday, representing a premium of 15.5% to Welbilt’s closing price on Thursday.

Founded in 1864 and headquartered in New Port Richey, Florida, Welbilt has built 12 brands in the foodservice industry in a span of over 85 years. The company provides ghost kitchen solutions.  On April 21, 2021, Welbilt had entered into an all stock definitive agreement to be acquired by The Middleby Corporation (MIDD). Carl Icahn, Welbilt’s largest shareholder with an 8.4% stake, had agreed to that deal. Ali Group’s bid trumps Middleby’s offer. Welbilt will have to pay a break-up fee of $110 million to Middleby if it decides to abandon it at the altar and tie the knot with Ali Group.

You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.

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