ACE to Buy Chubb for $28 B, Peabody Tumbles on Higher Loss Estimate

Mukesh Buch
01 Jul, 2015
New York City

ACE agreed to acquire the Chubb Corp for $28.3 billion. Acuity Brands net surged 47% on 13% increase in revenues. AZZ net soared 34%. General Mills profit plunged 53%. Paychex net and revenues climbed. Peabody tumbled 22%. UniFirst net jumped 5%.

[R]10:45 PM New York – ACE agreed to acquire the Chubb Corp for $28.3 billion. Acuity Brands net surged 47% on 13% increase in revenues. AZZ net soared 34%. General Mills profit plunged 53%. Paychex net and revenues climbed. Peabody tumbled 22%. UniFirst net jumped 5%.[/R]

Tollbooth Index increased 0.8% or 81.20 to 10,698.16.

Earnings Review

ACE Limited ((ACE)) soared 7.2% or $7.32 to $109.20 after the Switzerland-based insurance company agreed to acquire The Chubb Corporation for about $28.3 billion in a cash-and-stock.

Chubb shareholders will receive $62.93 per share in cash and 0.6019 shares of Ace share. The offered price represents 30% premium to Chubb’s closing price of $95.14 on June 30.

The transaction is expected to close during the first quarter of 2016.

Acuity Brands, Inc ((AYI)) gained 3.3% or $6.02 to $186 after the lighting fixtures maker said net revenues in the third-quarter ending in May soared 13.2% to $683.7 million from a year ago period.

Net income in the quarter surged 47.3% to $64.5 million or $1.48 per diluted share compared to $43.8 million or $1.01 from the same quarter last year.

AZZ Inc ((AZZ)) rose 29 cents to $52.09 after the specialty electrical equipment maker stated revenues in the first-quarter ending in May increased 5.9% to $228.9 million from a year ago period.

Net income in the quarter soared 33.5% to $19.9 million or 77 cents per diluted share compared to $14.9 million or 58 cents from the same quarter last year.

General Mills Inc ((GIS)) dropped 2.4% or $1.31 to $54.41 after the food maker reported net revenues in the fourth-quarter ending in May edged up 0.4% to $4.3 billion from a year ago period.

Net income in the quarter plunged 53% to $186.8 million or 30 cents per diluted share compared to $404.6 million or 65 cents from the same quarter last year.

Paychex, Inc ((PAYX)) increased 1.3% or 59 cents to $47.47 after the outsourcing company said total revenues in the fourth-quarter ending in May jumped 8.1% to $692.2 million from a year ago period.

Net income in the quarter climbed 10% to $161.2 million or 44 cents per diluted share compared to $145.9 million or 40 cents from the same quarter last year.

Peabody Energy Corporation ((BTU)) tumbled 22.2% or 48 cents to $1.70 after the coal company revised higher its estimated loss for the fiscal second-quarter.

The company said this was mainly due to series of substantial rain and flash flooding events in the Southern Powder River Basin primarily in June that reduced production to 5.5 million tons.

UniFirst Corp ((UNF)) jumped 5.9% or $6.67 to $118.52 after the workplace uniforms provider said net revenues in the third-quarter ending in May rose 3.8% to $365.6 million from a year ago period.

Net income in the quarter jumped 5% to $32.5 million or $1.61 per diluted share compared to $30.9 million or $1.53 from the same quarter last year.