Avis is buying Zipcar for$491.2 million, expanding its offerings from traditional car rentals to car sharing services.
Car sharing has become a popular alternative to traditional rentals in metropolitan areas and on college campuses, allowing members to get a vehicle quickly for short trips. Zipcar, which was founded in 2000, has more than 760,000 members. It went public in 2011 and posted net income of $850,000 in the first nine months of this year.
"By combining with Zipcar, we will significantly increaseour growth potential, both in the United States and internationally, and will position our company to better serve a greater variety of consumer and commercial transportation needs," said Avis Chairman and CEO Ronald Nelson.
Bringing the Avis fleet into play will help Zipcar meet high demand on weekends,Avis said, when most peoplemake a run to the grocery store or run other errands. It will also help Avis compete with Hertz Global Holdings Inc., which has its own car sharing service, Hertz on Demand.
Both Zipcar and Hertz on Demand park cars throughout cities and college campuses, which allow renters to avoid waiting in lines at traditionalcar rental counters. Some areas provide reserved parking for the cars and vehicles can be located online or through the companies' smart phone applications.
The car sharing companies also pay for fuel, a cost not included in standard car rentals. Although the hourly rental options are quicker and cheaper than renting a car by the day, Zipcar and Hertz on Demand are generally moreexpensive for rentals longerthan 24 hours.
Avis Budget Group Inc. willpay $12.25 per share, whichis a 49 percent premium to Zipcar's closing price on Friday. The companies put the total value of the deal atapproximately $500 million.
Zipcar Inc. has about 40.1 million outstanding shares, according to FactSet. It will become an Avis subsidiary and have headquarters in Boston.
Its shares jumped almost more than 47 percent to$12.19 in premarket tradingMonday.
The boards of both companies unanimously approved the buyout. If Zipcar shareholders approvethe deal, it's expected to close in the spring.
Avis anticipates $50 million to $70 million in annual savings. The Parsippany, N.J.-based company also expects the acquisition will add to its adjusted earningsper share in the second year after it is complete.
Avis said that it expects certain members of Zipcar management, including Chairman and CEO Scott Griffith and President and Chief Operating Officer Mark Norman, to help run its day-to-day operations.
Avis also maintained its 2012 adjusted earnings forecast Monday of about$2.35 to $2.45 per share on revenue of approximately$7.3 billion.
Analysts predict earnings of$2.42 per share on revenueof $7.3 billion.
Showing posts with label Mergers and Acquisition.. Show all posts
Showing posts with label Mergers and Acquisition.. Show all posts
Wednesday, 2 January 2013
Friday, 7 December 2012
China National Offshore Oil Corporation in acquisition of Nexen
Canada on Friday allowed a Chinese state-run oil giant to move forward with $15 billion takeover of a domestic energy company, but the government indicated that such deals might not pass muster in the future.
The deal - the acquisition of Nexen by the China National Offshore Oil Corporation, or Cnooc - is the latest effort by the Chinese government to find new sources of oil and natural gas reserves to helpdrive the country's growth.The state-run Cnooc has been active, striking severalpartnerships in Canada andthe United States.
Canada, in part, has welcomed the alliances.
Prime Minister Stephen Harper has been trying to create new markets to export Canadian energy, which is largely dependenton the United States for its exports. He has been courting China since the United States stalled approval of the Keystone XL pipeline project, which would move more oil sandsproduction to the Gulf Coast. On Friday, the governmentalso approved a $5 billion acquisition of Progress Energy Resources of Canada by Petronas, the Malaysian state-owned oil and gas company.
But the Nexen deal has also reignited the controversy over strategic assets ending up in the hands of foreign owners. Seven years ago, Cnooc gave up on an $18.5 billionbid for Unocal of the United States after political opposition. Two years ago, Sinochem, a Chinese chemicals maker, backed away from buying the Potash Corporation of Saskatchewan for similar reasons.
The Nexen bid prompted nationalistic concerns in Canada. Some conservative members of Parliament worried about Cnooc, which is an arm of the Chinese government, gaining control over energy assets generally controlled by Canadian provinces. Recognizing the sensitivity of the deal, Mr. Harper noted that foreign investment rules would be changed to block companies owned by foreign governments from acquiring properties in Alberta oil sands in all but"exceptional" circumstances.
"Canadians generally, and investors specifically, should understand that these decisions are not the beginning of a trend, but rather the end of a trend," Mr. Harper said at a news conference. "When we say that Canada is open for business, we do not mean that Canada is for sale to foreign governments."
It is not clear how the directive will play out on the deal-making front.
The deal - the acquisition of Nexen by the China National Offshore Oil Corporation, or Cnooc - is the latest effort by the Chinese government to find new sources of oil and natural gas reserves to helpdrive the country's growth.The state-run Cnooc has been active, striking severalpartnerships in Canada andthe United States.
Canada, in part, has welcomed the alliances.
Prime Minister Stephen Harper has been trying to create new markets to export Canadian energy, which is largely dependenton the United States for its exports. He has been courting China since the United States stalled approval of the Keystone XL pipeline project, which would move more oil sandsproduction to the Gulf Coast. On Friday, the governmentalso approved a $5 billion acquisition of Progress Energy Resources of Canada by Petronas, the Malaysian state-owned oil and gas company.
But the Nexen deal has also reignited the controversy over strategic assets ending up in the hands of foreign owners. Seven years ago, Cnooc gave up on an $18.5 billionbid for Unocal of the United States after political opposition. Two years ago, Sinochem, a Chinese chemicals maker, backed away from buying the Potash Corporation of Saskatchewan for similar reasons.
The Nexen bid prompted nationalistic concerns in Canada. Some conservative members of Parliament worried about Cnooc, which is an arm of the Chinese government, gaining control over energy assets generally controlled by Canadian provinces. Recognizing the sensitivity of the deal, Mr. Harper noted that foreign investment rules would be changed to block companies owned by foreign governments from acquiring properties in Alberta oil sands in all but"exceptional" circumstances.
"Canadians generally, and investors specifically, should understand that these decisions are not the beginning of a trend, but rather the end of a trend," Mr. Harper said at a news conference. "When we say that Canada is open for business, we do not mean that Canada is for sale to foreign governments."
It is not clear how the directive will play out on the deal-making front.
Monday, 19 November 2012
News Corp set to take 49 percent stakein Yankee channel:
(Reuters) - Rupert Murdoch 's News Corp is expected to announce this week that it will acquire a 49 stake in the YES Network from the New York Yankees baseball team and its partners, in a deal that would value the sports channel at $3 billion, a person with knowledge of the talks told Reuters.
The deal is structured to allow News Corp to eventually acquire control ofthe channel, which broadcasts Yankees baseball and Brooklyn Nets basketball games to 15 million subscribers, said the person, who spoke on condition of anonymity because the deal has not been announced.
News Corp will share in the profits, according to the NewYork Times, which first reported details of the agreement. News Corp will have an option to increase itsstake to 80 percent in three to five years, the newspaper said, citing unidentified sources.
Yankee Global Enterprises , the parent company of the Yankees, owns 34 percent of YES. Another 40 percent is owned by Goldman Sachs and Providence Equity, with the remainder owned by former owners of the Nets.
A News Corp spokeswoman declined to comment. YES representatives were not immediately available for comment.
The deal would allow YES toraise the $2.99 monthly fee per subscriber it currently charges cable and satellite operators to carry the channel, said the person. News Corp would negotiate on its behalf with the operators as part of a larger package of sports channels.
News Corp, the media company that owns Fox Broadcasting and The Wall Street Journal, owns or holdsstakes in 20 regional sports networks, providing sports programming to more than 67 million subscribers.
Initially, the Fox sports channels are not expected toprovide local or national sports programming to YES, or to manage the channel, the person said.
The deal is structured to allow News Corp to eventually acquire control ofthe channel, which broadcasts Yankees baseball and Brooklyn Nets basketball games to 15 million subscribers, said the person, who spoke on condition of anonymity because the deal has not been announced.
News Corp will share in the profits, according to the NewYork Times, which first reported details of the agreement. News Corp will have an option to increase itsstake to 80 percent in three to five years, the newspaper said, citing unidentified sources.
Yankee Global Enterprises , the parent company of the Yankees, owns 34 percent of YES. Another 40 percent is owned by Goldman Sachs and Providence Equity, with the remainder owned by former owners of the Nets.
A News Corp spokeswoman declined to comment. YES representatives were not immediately available for comment.
The deal would allow YES toraise the $2.99 monthly fee per subscriber it currently charges cable and satellite operators to carry the channel, said the person. News Corp would negotiate on its behalf with the operators as part of a larger package of sports channels.
News Corp, the media company that owns Fox Broadcasting and The Wall Street Journal, owns or holdsstakes in 20 regional sports networks, providing sports programming to more than 67 million subscribers.
Initially, the Fox sports channels are not expected toprovide local or national sports programming to YES, or to manage the channel, the person said.
Friday, 16 November 2012
Nike is selling its Cole Haan brand to private Apax Partners for $570 million,
Nike (NKE) is selling its Cole Haanbrand to private equity firm Apax Partners for $570 million, part of its effort to focus on core brands.
The sneakers, clothing and sports gear maker said in May that it wanted to sell theleather shoe and bag division and its Umbro soccerjersey brand to cut costs.
Nike is focusing on its namesake brand, Jordan, Converse and Hurley.
The Cole Haan deal completes the Beaverton, Ore., company's sale plan. Last month it announced thatclothing licensing company Iconix Brand Group Inc. would buy Umbro for $225 million.
The sneakers, clothing and sports gear maker said in May that it wanted to sell theleather shoe and bag division and its Umbro soccerjersey brand to cut costs.
Nike is focusing on its namesake brand, Jordan, Converse and Hurley.
The Cole Haan deal completes the Beaverton, Ore., company's sale plan. Last month it announced thatclothing licensing company Iconix Brand Group Inc. would buy Umbro for $225 million.
Scotiabank has concluded the acquisition of ING DIRECT Canada from Netherlands ING Group,
Canada-based Scotiabank has concluded the acquisition of ING DIRECT Canada from Netherlands ING Group, following the receipt of all regulatory approvals.
Acquisition follows an agreement signed between the two parties for a total cash consideration of C$3.1bn (€2.5bn) in August 2012.
Commenting on the deal, Scotiabank Group Canadian Banking head Anatol von Hahn said the acquisition supports the firm's strategic goals and enables to broaden its funding base, while ING DIRECT's revenues and earnings support the overall growth objectives.
"ING DIRECT will continue to operate as a separate and distinct wholly-owned subsidiary, providing low cost and highly competitive products to self-directed customers," Hahn added.
Both organisations will remain distinct in the initial stages and changes to name or branding of ING DIRECT will not happen in the next few months, but options will be explored in future.
ING is selling its direct banking businesses to streamline operations and repay the state aid it received during the 2008 financial crisis.
With assets of $670bn as at 31 July 2012, Scotiabank manages over 81,000 employees and serves about 19 million customers in morethan 55 countries across the globe through its affiliates.
Acquisition follows an agreement signed between the two parties for a total cash consideration of C$3.1bn (€2.5bn) in August 2012.
Commenting on the deal, Scotiabank Group Canadian Banking head Anatol von Hahn said the acquisition supports the firm's strategic goals and enables to broaden its funding base, while ING DIRECT's revenues and earnings support the overall growth objectives.
"ING DIRECT will continue to operate as a separate and distinct wholly-owned subsidiary, providing low cost and highly competitive products to self-directed customers," Hahn added.
Both organisations will remain distinct in the initial stages and changes to name or branding of ING DIRECT will not happen in the next few months, but options will be explored in future.
ING is selling its direct banking businesses to streamline operations and repay the state aid it received during the 2008 financial crisis.
With assets of $670bn as at 31 July 2012, Scotiabank manages over 81,000 employees and serves about 19 million customers in morethan 55 countries across the globe through its affiliates.
Thursday, 15 November 2012
Starbucks Buys Teavana for$620M
Furthering its reach in the multi-billion-dollar specialty tea market, Starbucks ( SBUX ) on Wednesday said it is buying Teavana ( TEA ) for about $620 million in cash.
Teavana shareholders will receive $15.50 per share in cash.
Starbucks said the purchase of Teavana, which makes more than 100 varieties of premium loose-leaf teas, other artisanal teaware and related merchandise, propelsit deeper into the $40 billiontea market.
“We believe the tea category is ripe for reinvention and rapid growth,” Starbucks CEO Howard Schultz said in a statement. “The Teavana acquisition now positions us to disrupt and lead, just as we did with espresso startingthree decades ago.”
Investors seemed slightly less optimistic on the deal and pushed Starbucks’ shares down more than 2% to $49.31 shortly after the announcement. Teavana's stock soared more than 52% to $15.42.
The Teavana brand adds to Starbucks existing Tazo brand and Schultz said it gives the café operator an opportunity to create a two-tiered market position, dominating globally both coffee and tea, two of the world's biggest beverage markets.
Teavana’s 300 mall-based stores and global sourcing capabilities and merchandising will add to Starbucks' existing infrastructure. Starbucks said it intends to grow the number of Teavana retail stores and add a “high-profile neighborhood store concept,” which it is hoping will expand the tea brand’s domestic and global footprint.
In a partnership through Starbucks’ joint venture partner Alshaya, Teavana recently opened its first storein the Middle East and has plans to enter new, high-consumption tea markets around the world, the companies said in a joint statement.
Starbucks’ president of channel development and emerging brands, Jeff Hansberry, who will head the new subsidiary, said the acquisition provides Starbucks with new channelsof distribution and strengthens its core offerings.
The Seattle-based coffee company expects Teavana to be accretive to earnings by about a penny a share in fiscal 2013.
Teavana shareholders will receive $15.50 per share in cash.
Starbucks said the purchase of Teavana, which makes more than 100 varieties of premium loose-leaf teas, other artisanal teaware and related merchandise, propelsit deeper into the $40 billiontea market.
“We believe the tea category is ripe for reinvention and rapid growth,” Starbucks CEO Howard Schultz said in a statement. “The Teavana acquisition now positions us to disrupt and lead, just as we did with espresso startingthree decades ago.”
Investors seemed slightly less optimistic on the deal and pushed Starbucks’ shares down more than 2% to $49.31 shortly after the announcement. Teavana's stock soared more than 52% to $15.42.
The Teavana brand adds to Starbucks existing Tazo brand and Schultz said it gives the café operator an opportunity to create a two-tiered market position, dominating globally both coffee and tea, two of the world's biggest beverage markets.
Teavana’s 300 mall-based stores and global sourcing capabilities and merchandising will add to Starbucks' existing infrastructure. Starbucks said it intends to grow the number of Teavana retail stores and add a “high-profile neighborhood store concept,” which it is hoping will expand the tea brand’s domestic and global footprint.
In a partnership through Starbucks’ joint venture partner Alshaya, Teavana recently opened its first storein the Middle East and has plans to enter new, high-consumption tea markets around the world, the companies said in a joint statement.
Starbucks’ president of channel development and emerging brands, Jeff Hansberry, who will head the new subsidiary, said the acquisition provides Starbucks with new channelsof distribution and strengthens its core offerings.
The Seattle-based coffee company expects Teavana to be accretive to earnings by about a penny a share in fiscal 2013.
Monday, 12 November 2012
Leucadia to Buy Jefferies in$3.6 Billion Deal
The Leucadia National Corporation said on Mondaythat it would buy the Jefferies Group in a deal valued at about $3.6 billion.
Shareholders of Jefferies will receive 0.81 of a Leucadia share for each of their shares, the announcement said. That represents a 24 percent premium to the closing price of Jefferies on Friday.
Leucadia, a conglomerate that has been likened to a"baby Berkshire Hathaway" because of the wide range of its holdings, already ownsabout 28.6 percent of Jefferies. After the deal closes, Jefferies shareholders will own 35.3 percent of the combined company.
The deal will give Jefferies adeep-pocketed owner as it continues to build out a full-service investment bank. The firm has sought toraise its profile in businesses like mergers advisory in partto provide a counterbalanceto its core business of trading stocks and bonds.
The firm's stock price has outperformed those of larger rivals like Goldman Sachs and Morgan Stanley over the last five years, though all three banks havestruggled since the onset of the financial crisis.
Jefferies survived questions about its holdings in European debt last year, quickly selling off government bonds in an effort to assuage market fears.
Richard B. Handler, chairman and chief executive of Jefferies, will become Leucadia's chief. Joseph S. Steinberg, Leucadia's president and co-founder, will become chairman of the combined company. Ian M. Cumming, Leucadia's other co-founderand its current chairman and chief executive, will retire but remain a director.
"Having known Joe and Ianfor over two decades, this transaction represents the realization of a personal dream for me," Mr. Handlersaid in a statement. "I am honored with the trust and confidence Ian and Joe are demonstrating by allowing us to carry on their life's work."
Shareholders of Jefferies will receive 0.81 of a Leucadia share for each of their shares, the announcement said. That represents a 24 percent premium to the closing price of Jefferies on Friday.
Leucadia, a conglomerate that has been likened to a"baby Berkshire Hathaway" because of the wide range of its holdings, already ownsabout 28.6 percent of Jefferies. After the deal closes, Jefferies shareholders will own 35.3 percent of the combined company.
The deal will give Jefferies adeep-pocketed owner as it continues to build out a full-service investment bank. The firm has sought toraise its profile in businesses like mergers advisory in partto provide a counterbalanceto its core business of trading stocks and bonds.
The firm's stock price has outperformed those of larger rivals like Goldman Sachs and Morgan Stanley over the last five years, though all three banks havestruggled since the onset of the financial crisis.
Jefferies survived questions about its holdings in European debt last year, quickly selling off government bonds in an effort to assuage market fears.
Richard B. Handler, chairman and chief executive of Jefferies, will become Leucadia's chief. Joseph S. Steinberg, Leucadia's president and co-founder, will become chairman of the combined company. Ian M. Cumming, Leucadia's other co-founderand its current chairman and chief executive, will retire but remain a director.
"Having known Joe and Ianfor over two decades, this transaction represents the realization of a personal dream for me," Mr. Handlersaid in a statement. "I am honored with the trust and confidence Ian and Joe are demonstrating by allowing us to carry on their life's work."
Thursday, 8 November 2012
Priceline.com to acquire travel site Kayak for US$1.8-billion
Priceline.com Inc., the most valuable online-travel agency, has agreed to buy Kayak Software Corp. for US$1.8-billion in cash and stock to expand its Web-based travel services.
Kayak shareholders will receive US$40 a share, the companies said in a statement. That price represents a 29% premiumover Kayak’s closing price of US$31.04 in New York today, and it includes about US$500-million in cash as well as US$1.3-billion in equity and assumed stock options.
Priceline has been using acquisitions to add customers as it works to grow sales and fend off competition in a sluggish economy. Kayak, which raised US$91-million in an initial public offering in July, lets travelers compareprices and make reservations for hotels, flights, cars and vacations.
Kayak shareholders will receive US$40 a share, the companies said in a statement. That price represents a 29% premiumover Kayak’s closing price of US$31.04 in New York today, and it includes about US$500-million in cash as well as US$1.3-billion in equity and assumed stock options.
Priceline has been using acquisitions to add customers as it works to grow sales and fend off competition in a sluggish economy. Kayak, which raised US$91-million in an initial public offering in July, lets travelers compareprices and make reservations for hotels, flights, cars and vacations.
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