Merger activity increased significantly last week with seven new deals announced and one deal completed.
Three of the seven M&A deals announced last week were bank-related mergers. There have been 18 new deals announced in the month of June so far worth over $36 billion. This is a significant increase compared to the 6 deals announced in June 2020 that were worth over $17 billion. Business combinations in the SPAC area also continue to increase consistently.
Buzzfeed, the digital media and lifestyle company announced on Thursday, that it will become a publicly listed company through a SPAC deal by merging with 890 5th Avenue Partners (ENFA). Buzzfeed also announced plans to acquire Complex Networks from Verizon and publisher Hearst for $300m. Along with this acquisition, it will begin trading with an implied valuation of $1.5 billion.
Founded in 1879 and headquartered in Manchester, Connecticut, Lydall (LDL) designs and manufactures specialty engineered products for demanding thermal/acoustical and filtration/separation applications. During the COVID-19 pandemic, the company used its expertise in filtration technology to produce face masks that have been in high demand. Last week, Lydall entered into an agreement to be acquired by Unifrax, a company that makes high temperature-resistant fabricated products, coatings, insulation, furnace hardware, textiles, and battery materials. Unifrax will acquire Lydall for $62.10 per share in cash, implying a total enterprise value of approximately $1.3 billion. Lydall stock went up by 85% after the announcement of this news.
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 last week.
SPAC Arbitrage
There were 4 SPAC IPOs filed and 7 new SPAC business combinations announced last week. You can find the new SPAC IPO announcements in our SPACs tool here.
Weekly Spread Changes:
The table below shows weekly spread changes between June 18, and June 25, 2021.
Symbol | Quote | Acquiring Company | Acquiring Company Quote | Current Spread | Last Week Spread | Spread Change Weekly | Deal Type |
---|---|---|---|---|---|---|---|
DOYU | 7.09 | HUYA Inc. (HUYA) | 17.25 | 77.61% | 48.12% | 29.49% | All Stock |
TEDU | 2.86 | Kidedu Holdings Limited (N/A) | 0.00 | 39.86% | 25.39% | 14.47% | All Cash |
SBBP | 3.15 | Xeris Pharmaceuticals, Inc. (XERS) | 4.81 | 19.72% | 11.11% | 8.61% | All Stock |
WBT | 23.6 | The Middleby Corporation (MIDD) | 171.12 | -10.09% | -16.54% | 6.45% | All Stock |
SVBI | 11.9 | Shore Bancshares, Inc. (SHBI) | 16.96 | 1.82% | -3.18% | 5.00% | Cash Plus Stock |
CORE | 45.62 | Performance Food Group Company (PFGC) | 48.9 | -0.50% | 0.75% | -1.25% | Cash Plus Stock |
CCRC | 6.43 | Taiying Group Ltd. and Taiying International Inc. (N/A) | 0.00 | 1.09% | 2.36% | -1.27% | All Cash |
CADE | 21.62 | BancorpSouth Bank (BXS) | 29.01 | -0.29% | 1.40% | -1.69% | Cash Plus Stock |
XEC | 73.05 | Cabot Oil & Gas Corporation (COG) | 16.82 | -7.56% | -4.83% | -2.73% | All Stock |
BPY | 19 | Brookfield Asset Management Inc. (BAM) | 52.2 | -4.37% | -1.41% | -2.96% | Special Conditions |
Deal Statistics:
Total Number of Deals Closed in 2021 | 90 |
Total Number of Deals Not Completed in 2021 | 5 |
Total Number of Pending Deals | |
Cash Deals | 45 |
Stock Deals | 33 |
Stock & Cash Deals | 13 |
Special Conditions | 3 |
Total Number of Pending Deals | 94 |
Aggregate Deal Consideration | $770.48 billion |
New Deals:
Deal Updates:
Closed Deals:
Top 10 deals with largest spreads:
Symbol | Announced Date | Acquiring Company | Closing Price | Last Price | Closing Date | Profit | Annualized Profit |
---|---|---|---|---|---|---|---|
DOYU | 10/12/2020 | HUYA Inc. (HUYA) | $12.59 | $7.09 | 06/30/2021 | 77.61% | 9442.47% |
TEDU | 04/30/2021 | Kidedu Holdings Limited (N/A) | $4.00 | $2.86 | 09/30/2021 | 39.86% | 153.15% |
MX | 03/26/2021 | South Dearborn Limited (N/A) | $29.00 | $24.11 | 12/31/2021 | 20.28% | 39.59% |
SBBP | 05/24/2021 | Xeris Pharmaceuticals, Inc. (XERS) | $3.77 | $3.15 | 11/15/2021 | 19.72% | 51.04% |
NEWA | 10/02/2020 | Crouching Tiger Holding Limited (N/A) | $3.65 | $3.23 | 06/30/2021 | 13.00% | 1582.04% |
OSN | 12/17/2020 | New Ossen Group Limited (N/A) | $5.10 | $4.55 | 06/30/2021 | 12.09% | 1470.70% |
SJR | 03/15/2021 | Rogers Communications Inc. (RCI) | $32.40 | $28.94 | 06/30/2022 | 11.96% | 11.86% |
KSU | 05/21/2021 | Canadian National Railway Company (CNI) | $320.31 | $286.47 | 12/31/2022 | 11.81% | 7.81% |
WLTW | 03/09/2020 | Aon plc (AON) | $263.21 | $235.5 | 07/31/2021 | 11.77% | 126.30% |
XLNX | 10/27/2020 | Advanced Micro Devices, Inc. (AMD) | $147.56 | $132.12 | 12/31/2021 | 11.68% | 22.81% |
List of all pending deals:
Conclusion:
Multiple deals continue to receive required regulatory and shareholder approvals as we come closer to the end of the second quarter of the year. In the SPAC area, the number of IPOs is consistent with the previous month so far with 19 SPAC IPOs announced in the month of June.
Disclaimer: I have long positions in Nuance Communications (NUAN), Change Healthcare (CHNG) and Brookfield Property Partners (BPY). 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.