Gardner Denver & SPX Talks Collapse, AEGON’s Accord with Santander: Mergers and Acquisitions Update
On Friday, Crane Co. (NYSE:CR) will acquire all equity interests in MEI Conlux Holdings (U.S.) and its affiliate MEI Conlux Holdings (Japan) from Bain Capital and Advantage Partners. The price is roughly $820 million on a cash-free and debt-free basis, marking 9.6 times MEI’s estimated 2012 earnings before interest, taxes, depreciation, and amortization of $85 million. The transaction should close in the second quarter.
Discussions are said to have ended between the industrial machinery maker Gardner Denver (NYSE:GDI) and SPX Corporation (NYSE:SPW) and the private equity firms which made offers for the company are now invited to re-engage in a sale process in early January, according to an inside source Friday, who said that the talks collapsed due to doubts among both parties that the deal would succeed. This week, the management of SPX saw increasing pressure from shareholders who were uncertain of the rationale of a deal and price offered to Gardner Denver, said a different source.
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AEGON (NYSE:AEG) reaches an exclusive 25-year strategic partnership accord with Banco Santander for the distribution of both protection and general insurance products via the group’s network in excess of 4,600 bank branches, focused on a potential client base numbering 12 million customers. Through the terms, the former will buy a 51 percent interest in both a life insurance firm as well as in a non-life insurance company for €220 million. Depending upon the performance of the partnership, the firm may pay an additional amount following five years. The transaction is expected to close in the first half of next year.
Pan American Silver Corp. (NASDAQ:PAAS) refutes chatter that it intends to bail out of its flagship Navidad silver project in Argentina for which it paid for that $500 million in 2009. Navidad could be the richest undeveloped deposit of silver on the planet, but its location in the Chubut Province, which bans open-pit mining, makes that moot. The Vancouver-based owner was unable to get the ban lifted, as it had planned to do, and now might exit. Chief executive Geoff Burns said on Thursday that, “Where we go in January depends on our sense of what the governor and the legislature’s urgency is to actually bring this forward as a debate item.”
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