ADT Goes Private in $7 B Deal, Freeport Raises $1 B

Mukesh Buch
16 Feb, 2016
New York City

ADT agreed to be acquired by Apollo Global for $7 billion. Baxalta net plunged 88%. Freeport agreed to sell its 13% stake to Sumitomo Metal Mining. Generac net plummeted 81% and agreed to acquire a majority stake in Italy-based PR Industrial. Hormel Foods net soared.

[R]11:45 AM New York – ADT agreed to be acquired by Apollo Global for $7 billion. Baxalta net plunged 88%. Freeport agreed to sell its 13% stake to Sumitomo Metal Mining. Generac net plummeted 81% and agreed to acquire a majority stake in Italy-based PR Industrial. Hormel Foods net soared.[/R]

Tollbooth Index increased 82.77 or 0.9% to 9,876.11.

Earnings Review

The ADT Corporation ((ADT)) surged 49.6% or $13.33 to $40.20 after the security and surveillance products provider agreed to be acquired by private equity firm, Apollo Global Management, LLC for $42 per share in cash or about $6.9 billion.

Alexander''s, Inc ((ALX)) jumped 2.3% or $8.30 to $368.30 after the real estate investment company said revenue in the fourth-quarter ending in December increased 2.9% from a year ago to $52.8 million.

Net income in the quarter soared 29.7% to $23.6 million or $4.61 per diluted share compared to $18.2 million or $3.55 per share from the same quarter last year.

Baxalta Inc ((BXLT)) rose 19 cents to $38.86 after the biopharmaceutical company said revenue in the fourth-quarter ending in December jumped 5% from a year ago to $1.8 billion.

Net income in the quarter plunged 87.5% to $95 million or 14 cents per diluted share compared to $763 million or $1.12 per share from the same quarter last year.

Freeport-McMoRan Inc ((FCX)) soared 9.8% or 54 cents to $6.07 after the oil and natural gas producer agreed to sell 13% stake in its Morenci unincorporated joint venture to Japan-based Sumitomo Metal Mining Co Ltd for about $1 billion in cash.

The transaction is expected to close in mid-2016.

Genuine Parts Company ((GPC)) gained 1.1% or 95 cents to $88.81 after the industrial replacement parts distributor reported revenue in the fourth-quarter ending in December dropped 3.7% from a year ago to $3.68 billion.

Net income in the quarter fell 2.6% to $161.3 million compared to $165.6 million and diluted earnings per share were flat at $1.07 from the same quarter last year.

Generac Holdings Inc ((GNRC)) surged 12.2% or $3.39 to $31.30 after the portable generators maker stated net sales in the fourth-quarter ending in December plunged 11.4% from a year ago to $357.8 million.

Net income in the quarter plummeted 81.4% to $9.2 million or 14 cents per diluted share compared to $49.4 million or 70 cents per share from the same quarter last year.

Separately, the company agreed to acquire a majority share of Italy-based PR Industrial S.r.l, and its worldwide subsidiaries the owner of the Pramac brand for undisclosed financial terms.

The transaction is expected to close prior to the end of this first quarter.

Hormel Foods Corp ((HRL)) soared 5.1% or $2.11 to $43.60 after the food and meat products maker said total revenue in the first-quarter ending in December declined 4.3% from a year ago to $2.3 billion.

Net income in the quarter surged 36.9% to $235.1 million or 43 cents per diluted share compared to $171.7 million or 32 cents per share from the same quarter last year.

Hormel Foods lifted earnings per share forecast in the fiscal 2016 between $1.50 and $1.56 from earlier estimated range of $1.43 to $1.48 per share.