DONE DEAL! Mergers and Acquisitions of the Week

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This week’s M&A activity wasn’t too heated. However, there were plenty of rumors (See: Rumor Mill: This Week’s Mergers and Acquisitions).

Here’s your Cheat Sheet to mergers and acquisitions completed last week:

  • Snobs of the world, unite!  Louis Vuitton (MC.PA) will acquire Bulgari (BUL.MI) for about $5.2 billion, a 61 percent premium to Bulgari’s unaffected share price.  Now Louis Vuitton will be able to double the amount of watches and jewelry it sells, which we were all looking for them to do.  To be fair, since Bernard Arnault became CEO of Louis, he has muscled the company into the spotlight through acquisitions, and Bulgari is simply a way to keep up with the sales growth of its rivals.
  • Japanese medical equipment maker Terumo Corp (TRUMY.PK) will catapult itself to the top of the blood transfusion market with its $2.6 billion acquisition of U.S. medical device company CaridianBCT.  This deal is simply an example of the desire of Japanese companies to exploit the strong yen and buy up foreign assets.
  • Western Digital (NYSE:WDC), which makes computer hard drives, will buy Hitachi’s (NYSE:HIT) hard-disk-drive unit for $4.3 billion.  The newly merged company will have about 50 percent of the market share in the industry, which will put it as one of the top players and a formidable rival to Seagate (NASDAQ:STX).  The hard drive world may see a consolidation wave, especially given the growing threat from tablets such as the iPad, which don’t use hard drives.
  • It was a rumor, and now it’s for real: Cumulus Media (NASDAQ:CMLS), the second largest U.S. radio broadcaster, will acquire Citadel Broadcasting (CDELB.PK), which occupies the third spot in the U.S., for $2.5 billion.  Number one Clear Channel Communications may not have it so easy anymore.  Citadel exited bankruptcy protected last year.  Possible issues with the deal include financing, as Cumulus has had recent trouble meeting its debt covenants.

Not all deals get done. Don’t Miss: The Rumor Mill: Mergers & Acquisitions in Question (coming momentarily).

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