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Strategies & Market Trends : Speculating in Takeover Targets -- Ignore unavailable to you. Want to Upgrade?


To: richardred who wrote (3067)6/23/2012 12:27:19 AM
From: richardred  Read Replies (1) | Respond to of 6363
 
Cabot to acquire Norit N.V. in $1.1B chemicals merger
Boston Business Journal by Patricia Resende, MHT Date: Friday, June 22, 2012, 10:20am EDT


Boston specialty metals company Cabot Corp. said Thursday it has agreed to pay $1.1 billion to acquire Netherlands-based Norit N.V, a nearly century-old maker of activated carbon.

The acquisition will enable Cabot, a maker of carbon black, fumed silica, cesium formate drilling fluids, inkjet colorants and aerogels, to expand in the activated carbon market. Activated carbon materials are used in various applications, including environmental protection, air and water purification, food and beverages, pharmaceuticals and catalysts.

“Norit’s leading market position, unique technology and strong financial performance is an excellent fit with Cabot’s portfolio. This acquisition supports the ongoing transformation of our portfolio to a higher margin, less cyclical, specialty chemicals focused company,” said Cabot President and CEO Patrick Prevost in a written statement. “The acquisition of Norit is a natural extension of our core R&D and applications development competencies.”

Cabot plans to pay approximately $200 million in cash and $300 million of borrowings to finance the acquisition. It also plans to issue approximately $600 million of long-term debt prior to closing, which is expected by the end of the calendar year 2012.

bizjournals.com



To: richardred who wrote (3067)10/14/2012 11:07:19 AM
From: richardred  Respond to of 6363
 

Ecolab Agrees to Buy Champion for $2.2 Billion
By David Wethe and Jack Kaskey - Oct 12, 2012 4:31 PM ET



Ecolab Inc. (ECL), the largest provider of chemicals and services for water and wastewater treatment, agreed to buy Champion Technologies Inc. for about $2.2 billion in cash and stock, in a bid to become the largest oil-field chemicals supplier in North America.

Ecolab will pay approximately $1.7 billion in cash and issue about 8 million shares of common stock, the St. Paul, Minnesota-based company said today in a statement. The acquisition of closely held Champion should close by year end and add to earnings starting in 2013, Ecolab said.





Enlarge image
Ecolab will pay approximately $1.7 billion in cash and issue about 8 million shares of common stock, the St. Paul, Minnesota-based company said today in a statement. Photographer: Tim Boyle/Bloomberg




“The combined businesses strengthen Ecolab’s global energy services business, particularly in onshore North America shale plays,” Laurence Alexander, a New York-based analyst at Jefferies & Co. who rates the shares buy, said today in a note.

Shale production, which uses water, sand and chemicals to free oil and natural gas from rock formations, has quadrupled in the U.S. during the past four years. This is the second purchase by Ecolab of a company that makes energy-related chemicals. The company last year paid $5.4 billion for Nalco Holding Co.

Together, the deals will make Ecolab the largest producer of North American oilfield chemicals, with about a 40 percent market share, according to Mike Ritzenthaler, a research analyst at Piper Jaffray Cos. in Minneapolis.

Ecolab rose 4 percent to $66.24 at the close in New York, the biggest increase since August 2011.

Champion’s Competitors Chairman and Chief Executive Officer Douglas Baker Jr. said he’s expanding his newly created energy services unit by 60 percent with the addition of Houston-based Champion. The purchase shifts the unit’s focus to North America, where unconventional drilling methods are boosting demand for the chemicals Champion produces, such as solvents and rust inhibitors that boost petroleum output.

Champion competes against some of the largest oilfield- services companies, including Schlumberger Ltd. (SLB), Halliburton Co. (HAL) and Baker Hughes Inc. (BHI), making chemicals that are pumped underground to aid production.

Champion has about 3,300 employees in 30 countries generating an estimated $1.4 billion of sales this year, with about 70 percent in North America, Ecolab said. Sales have risen about 13 percent a year since 2009, compared with 11 percent in Ecolab’s energy services unit.

Energy Segment The company is controlled by the descendants of the late Willard M. Johnson, who first bought a stake in Champion in 1959. The opportunity for Ecolab to buy Champion came soon after the larger chemical company bought Nalco, and others also considered buying the business, Baker said on a conference call today. The three families who own Champion were motivated to sell by personal and tax reasons, Steve Taylor, president of Ecolab’s energy services unit, said the call.

Ecolab bought Nalco in December to gain chemicals used in water treatment and energy. Energy services is Ecolab’s fastest- growing segment and will comprise 25 percent of sales with the addition of Champion, up from 19 percent in the second quarter, Ecolab said. The cleaning and sanitizing unit, which supplies chemicals to food processors, restaurants and hotels, will remain the largest.

Ecolab is paying 11.4 times estimated 2012 earnings before interest, taxes, depreciation and amortization, Chief Financial Officer Daniel Schmechel said on the call. The multiple is 9.1 times Ebitda after $50 million in first-year cost savings are achieved and 6.4 times after $150 million in savings, he said. The average chemical transaction this year was for 7.2 times Ebitda, according to data compiled by Bloomberg.

Repurchase Plan The transaction includes assumption of Champion’s $37 million in net debt. Ecolab plans to finance the deal with a $900 million term loan and $750 million in senior notes, Schmechel said. Ecolab next year will buy back the remaining $280 million of shares in a $1 billion repurchase authorization, he said.

Profit in the third-quarter was about 87 cents a share, Ecolab said in the statement. That tops the 86-cent average estimate of 15 analysts surveyed by Bloomberg.

Champion was advised by Tudor, Pickering, Holt & Co. and Lazard Ltd. (LAZ), the company said on its website. Bank of America Corp. advised Ecolab.

To contact the reporters on this story: David Wethe in Houston at dwethe@bloomberg.net; Jack Kaskey in Houston at jkaskey@bloomberg.net

mailto:jkaskey@bloomberg.net



To: richardred who wrote (3067)1/25/2013 12:56:09 AM
From: richardred  Respond to of 6363
 
Calgon Carbon Responds to 13D Filing

The Company issued the following statement:

We welcome shareholders who believe in our investment potential, and we are open to ideas that can create shareholder value. As we often do with new shareholders, we have spoken with Starboard and have had a constructive exchange of ideas.

Our Board and management team remain fully committed to creating value for all shareholders through the successful execution of the Company’s strategy, and our Board will continue to focus on having a constructive mix of experience and capabilities among its Directors.

Calgon Carbon Corporation, headquartered in Pittsburgh, Pennsylvania, is a global leader in services and solutions for making water and air safer and cleaner.

For more information about Calgon Carbon’s leading activated carbon and ultraviolet technology solutions for municipalities and industries, visit www.calgoncarbon.com.



To: richardred who wrote (3067)2/5/2013 12:50:22 PM
From: richardred  Read Replies (3) | Respond to of 6363
 
Just a little bolt on, but encouraging on my CCC & MPR positions

Xylem announces acquisition of PIMS Group of the U.K. to enhance service capabilities in water and wastewater markets Press Release: Xylem Inc. – 30 minutes ago


WHITE PLAINS, N.Y.--(BUSINESS WIRE)--

Xylem Inc. ( XYL), a leading global water technology company focused on addressing the world’s most challenging water issues, announced today that it has acquired PIMS Group, a privately held United Kingdom-based wastewater services company, for approximately $57 million. The actual terms of the transaction were not disclosed. PIMS generated revenue of approximately $38 million for the fiscal year ended April 30, 2012.

PIMS Group, based in Farnborough, is a national supplier of wastewater installation and maintenance services for the municipal, industrial and private sector markets. PIMS provides a 24/7 service capability from design and installation to service and maintenance of pumping systems, sewers and drains, oil interceptors and sewage treatment plants.

“The core of Xylem’s growth strategy is to leverage our large installed base to deliver advanced solutions and services that create peace of mind for our customers and help ensure that their operations are running optimally,” said Gretchen McClain, Xylem's president and chief executive officer. “In bringing PIMS Group into the Xylem family, we are accelerating this strategy by adding an industry-leading and differentiated service capability built on PIMS’ world-class talent, tools and processes.”

PIMS Group was founded in 1972 and has approximately 220 employees located throughout the U.K. The acquisition builds on a successful partnership between the two companies established in 2000 when Xylem (then the water-related business group within ITT Corporation) named PIMS Group a certified Contracting Partner of its Flygt submersible pumps.

In 2012, Xylem introduced Xylem TotalCare, a comprehensive, integrated portfolio of services – from design and consultancy to energy audits to supervisory services to maintenance contracts – to ensure that customers’ operations run at their best.

“The expertise and knowledge resident in PIMS Group will enable us to create a stronger platform for delivering Xylem TotalCare to customers in the U.K. and around the world,” added McClain.

About Xylem

Xylem (XYL) is a leading global water technology provider, enabling customers to transport, treat, test and efficiently use water in public utility, residential and commercial building services, industrial and agricultural settings. The company does business in more than 150 countries through a number of market-leading product brands, and its people bring broad applications expertise with a strong focus on finding local solutions to the world’s most challenging water and wastewater problems. Xylem is headquartered in White Plains, N.Y., with 2011 revenues of $3.8 billion and 12,500 employees worldwide.

The name Xylem is derived from classical Greek and is the tissue that transports water in plants, highlighting the engineering efficiency of our water-centric business by linking it with the best water transportation of all – that which occurs in nature. For more information please visit us at www.xyleminc.com



To: richardred who wrote (3067)9/26/2013 10:45:46 AM
From: richardred  Read Replies (2) | Respond to of 6363
 
Danaher has a war chest- Pall would be expensive, but BRKS would be a nice bolt on IMO. They even bought my Keithly Instruments years ago.


Danaher $8 Billion Seen Fueling Bids for Pall, Spectris
By Brooke Sutherland & Thomas Black - Sep 10, 2013 10:47 AM ET



Danaher Corp. (DHR), a maker of everything from dental equipment to water filters, may spend some of its more than $8 billion in takeover firepower on Pall Corp. or Spectris Plc (SXS) to help boost sales amid the slowest growth in four years.

Chief Executive Officer Larry Culp said in July that the $47 billion company is looking for deals that can increase returns for shareholders. Spectris, a $4.3 billion maker of testing gear, could lure Danaher with its high margins and the opportunity for cost cutting, said Credit Suisse Group AG. Pall, an $8.1 billion supplier of water-filtration technology, could be an attractive target, FBR & Co. and Longbow Research said.

Danaher hasn’t spent more than $1 billion on a purchase since 2011, and now has a record amount of cash for takeovers. Macquarie Group Ltd. said investors are eager for more dealmaking, with the Washington-based company’s sales poised to increase by less than 4 percent this year, down from growth of more than 12 percent every year since 2009, according to data compiled by Bloomberg.

“Larry has made it pretty clear that he has that firepower,” Ajay Kejriwal, a New York-based analyst at FBR, said in a phone interview. “Given their track record, investors know that they will do something. It’s just a matter of time.”

A representative for Danaher said the company declined to comment.

Acquisition Strategy Danaher’s business is divided into five units: dental; test and measurement; environmental; life sciences and diagnostics; and industrial technologies. The company, which pays a quarterly dividend of just 2.5 cents a share, has historically rewarded shareholders by making acquisitions that fuel growth.

The company’s market value has surged more than four-fold in the last decade as it completed about 68 takeovers. While Danaher has already announced five deals this year, it hasn’t spent more than $1 billion on a transaction since the purchase of Beckman Coulter Inc. for about $7 billion in 2011, data compiled by Bloomberg show.

“This is a company that again and again has shown that via M&A it can create a ton of value,” Ross Muken, a New York-based analyst at International Strategy & Investment Group LLC, said in a phone interview. Danaher is “overdue” for a transaction.

Analysts estimate the company will boost sales 3.8 percent this year to $19 billion, the slowest growth since 2009.

Cash Advantage Danaher had a record $2.3 billion in cash as of June, according to data compiled by Bloomberg that goes back to 1987.

“The great advantage that Danaher has is that balance sheet, and so people would like them to put it to use,” Jonathan Groberg, a New York-based analyst at Macquarie, said in a phone interview. Without deals, “you’re left with a low-growth business.”

Danaher has the capability to do more than $8 billion in deals through 2014, Culp said on the company’s second-quarter earnings call in July.

“We’re looking for great fits where we can add value, where we can generate a return for our shareholders,” the CEO said. The company is having “high-quality conversations with high-quality companies.”

Pall (PLL), whose CEO Larry Kingsley is a former Danaher executive, has attractive margins and would be a “good strategic fit” within the conglomerate’s environmental-technologies division, said Kejriwal of FBR.

Revenue Stream Danaher could also be attracted to Pall’s steady revenue stream from installing and replacing filtration devices, according to Mark Douglass, an Independence, Ohio-based analyst at Longbow. Pall had sales of $2.6 billion in its latest fiscal year.

A deal “would definitely make sense,” Douglass said in a phone interview. Pall employees “would have already been introduced to at least some of the practices of the Danaher business system with an ex-Danaher manager at the helm.”

Pall’s valuation could be a deterrent to a deal, said Douglass and David Rose, a Los Angeles-based analyst at Wedbush Inc. The company’s market value has surged more than 70 percent since Kingsley took over as CEO in October 2011.

Spectris would be a more digestible target for Danaher, which would be drawn to its high margins, steady revenue and the potential for consolidation within the conglomerate’s own test and measurement division, according to Julian Mitchell, a New York-based analyst at Credit Suisse. Spectris generated revenue of $1.95 billion in 2012.

‘Right Wheelhouse’ “You look at their market cap, it’s in the right wheelhouse,” Mitchell said in a phone interview. “There’s scope for someone with a very good operating system like the Danaher business system to come in there and take out costs by centralizing the supply chain, the sales forces.”

Doug Novarro, a spokesman for Port Washington, New York-based Pall, didn’t return phone or e-mail messages requesting comment, while Clea Rosenfeld, head of corporate affairs at Egham, England-based Spectris, declined to comment on the potential for a deal with Danaher.

Today, Pall shares climbed 2.1 percent to $73.69 at 10:40 a.m. New York time, headed for an all-time closing high. Spectris rose 0.5 percent to 2,327 pence.

Danaher could seek acquisitions to bulk up its product-identification business, which makes printing and coding equipment, according to Muken of ISI. The operations are part of Danaher’s industrial technologies division.

“There’s still lots of companies available” for takeovers, Muken said. “You’ve got this mix of attractive market growth, no installed leader of size.”

Danaher also could pursue transactions in the life sciences and diagnostics industry, which last year accounted for 36 percent of its revenue, according to Brandon Couillard, a New York-based analyst at Jefferies Group LLC.

After Life The company explored a purchase of Life Technologies Corp. (LIFE), according to people familiar with the matter who asked not to be named because the process was private. Life agreed in April to sell itself to Thermo Fisher Scientific Inc. for about $16 billion, including debt.

Danaher “would like to do more in that area,” Couillard said in a phone interview. “It has long viewed Thermo as a competing bidder for every asset of interest in the space and with them currently tied up with Life, it does give Danaher some advantage in the negotiation process.”

Danaher is a disciplined buyer and with equity markets near record highs, the surging valuations of many potential targets have made dealmaking challenging, according to Nigel Frankson, a Baltimore-based analyst at Brown Advisory Inc., which owns Danaher stock among its holdings.

Buy, Fix “The current environment is probably unfavorable for them,” Frankson said in a phone interview. “As a shareholder of Danaher, I appreciate them not buying something just for the sake of buying something.”

At the same time, Danaher’s specialty is buying companies and applying its management system to boost profitability, he said.

“Danaher can buy a company and fix it and it will be more valuable tomorrow than it is the day they bought it,” Frankson said. “That’s what I want Danaher to do. The value accrued to the shareholder is clear and obvious.”

To contact the reporters on this story: Brooke Sutherland in New York at bsutherland7@bloomberg.net; Thomas Black in Dallas at tblack@bloomberg.net

To contact the editors responsible for this story: Sarah Rabil at srabil@bloomberg.net; Ed Dufner at edufner@bloomberg.net

bloomberg.com