China Kanghui Merges with Medtronic and 2 Stocks Rising to 52-Week Highs
China Kanghui Holdings (NYSE:KH): Medtronic (NYSE:MDT) and China Kanghui Holdings announced that they have entered into a merger whereby Medtronic will acquire Kanghui. The agreement calls for Medtronic to pay approximately $816 million in cash or $30.75 per ADS. The total value of the transaction, net of Kanghui’s cash, is expected to be approximately $755 million. The deal is expected to close in the next few months and is subject to customary closing conditions, including approval from the shareholders of Kanghui. Medtronic expects the net impact from this transaction to be earnings neutral for fiscal years 2013 and 2014 as the company intends to offset any dilutive impact of the transaction. Their shares closed at $30.35, up $5.24 or 20.87% on the day. They have traded in a 52-week range of $12.92 to $27.47.
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Sciquest (NASDAQ:SQI): SciQuest has signed a definitive agreement to acquire Spend Radar LLC, a provider of fast, easy and flexible spend analysis software. They purchased Spend Radar’s assets for total consideration of approximately $8 million in cash and $2 million of common stock. SciQuest may also make additional payments of up to $7.5 million consisting of cash and stock if Spend Radar achieves certain revenue performance targets over the next 5 quarters. The newly acquired operations are expected to add approximately $0.5 million of non-GAAP revenue in the fourth quarter of 2012 and grow a percentage that is in the mid-twenties. The Company also anticipates that the newly acquired operations will be slightly dilutive to neutral to non-GAAP net income in the fourth quarter of 2012 and neutral to slightly accretive in 2013. Their shares closed at $18.20, up $0.02 or 0.11% on the day. They have traded in a 52-week range of $11.35 to $18.34.
Walgreen Company (NYSE:WAG): Walgreen Co. reports revenue of $17.07 billion and a consensus of$17.14 billion. This year’s adjusted fourth quarter results exclude the negative impact of 9c per diluted share that is related to the company’s transaction with Alliance Boots GmbH, 10c per diluted share from the quarter’s life in and first out (LIFO) provision and 5c per diluted share in acquisition related amortization costs. The company intends to account for their 45% investment in Alliance Boots using the equity method of accounting on a one-month lag basis. Their shares closed at $36.44, down $0.16 or 0.44% on the day. They have traded in a 52-week range of $28.53 to $36.85.
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