GE to Sell Fleet Businesses; SYSCO Terminates Merger

Mukesh Buch
29 Jun, 2015
New York City

GE agreed to sell its fleet businesses to Element Financial and Arval. Gannett began trading as two separate companies. SYSCO terminated its merger agreement with US Foods. Amphenol agreed to acquire FCI Asia for $1.3 billion. AMAG agreed to buy Cord Blood Registry for $700 million.

[R]11:45 AM New York – GE agreed to sell its fleet businesses to Element Financial and Arval. Gannett began trading as two separate companies. SYSCO terminated its merger agreement with US Foods. Amphenol agreed to acquire FCI Asia for $1.3 billion. AMAG agreed to buy Cord Blood Registry for $700 million.[/R]

Tollbooth Index slipped 1.1% or 116.43 to 10,690.82.

Earnings Review

Amphenol Corporation ((APH)) jumped 4.1% or $2.29 to $57.97 after the electrical, electronic and fiber optic connectors maker agreed to acquire Singapore-based electronic connectors maker FCI Asia Pte Ltd for about $1.28 billion.

The transaction is expected to close by the end of this year.

AMAG Pharmaceuticals, Inc ((AMAG)) gained 35 cents to $70.71 after the specialty pharmaceutical company said it would acquire the largest newborn stem cell bank Cord Blood Registry owned by private equity firm GTCR for about $700 million in cash and stock.

The transaction is expected to close in the third-quarter of 2015.

The Carlyle Group LP diversified investment group agreed for an undisclosed stake in China-based logistics firm Shanghai ANE Logistics Ltd for about $120 million.

Dresser-Rand Group Inc ((DRC)) rose 3 cents to $85.18 after the European Commission cleared the petrochemical equipment supplier for the proposed merger with Siemens.

The closing of the transaction is scheduled to occur on June 30, 2015.

General Electric Co ((GE)) fell 21 cents to $26.89 after the diversified conglomerate agreed to sell its U.S., Mexico, Australia and New Zealand fleet businesses held by financial unit GE Capital to Canada-based Element Financial Corp for $6.9 billion or about C$8.6 billion.

The U.S. and Mexico part of the deal is expected to close in the third-quarter and the Australia and New Zealand part in the fourth-quarter.

Separately, the diversified conglomerate signed an agreement for the potential sale of its European fleet businesses to the U.K.-based privately held Arval, a subsidiary of BNP Paribas. The transaction is expected to close in fourth-quarter.

Gannett Co., Inc ((GCI)) tumbled 62.5% or $23.20 to $13.95 after the media and marketing company today completed the previously announced split-off in two publicly traded companies, print and broadcasting divisions.

Both companies will be headquartered in McLean, Virginia.

SYSCO Corporation ((SYY)) gained 3 cents to $38.40 after the foodservice provider terminated its merger agreement with US Foods a days after the U.S. District Court granted the Federal Trade Commission request for a preliminary injunction to block the proposed Sysco-US Foods merger.

This action also terminates an agreement with Performance Food Group to acquire US Foods facilities in 11 markets.

Under terms, Sysco had agreed to pay break-up fee of $300 million to US Foods and $12.5 million to PFG.

Earlier, Sysco had proposed to acquire the US Foods for about $3.5 billion.