4 Deals Including Daily News and Rockwell Collins Dominate Merger Monday

Mukesh Buch
05 Sep, 2017
New York City

HB Fuller agreed to acquire smaller rival Royal Adhesives for $1.6 billion. Nasdaq plans to buy eVestment for $705 million. Tronc agreed to buy the Daily News. Teleflex plan to buy NeoTract for $1.1 billion. United Technologies agreed to buy Rockwell Collins for $23 billion.

[R]11:45 AM New York – HB Fuller agreed to acquire smaller rival Royal Adhesives for $1.6 billion. Nasdaq plans to buy eVestment for $705 million. Tronc agreed to buy the Daily News. Teleflex plan to buy NeoTract for $1.1 billion. United Technologies agreed to buy Rockwell Collins for $23 billion.[/R]

Tollbooth Index decreased 29.69 or 0.2% to 12,360.58.

Earnings Review

HB Fuller Co ((FUL)) soared 8.1% or $4.11 to $54.79 after the adhesive maker agreed to acquire smaller rival Royal Adhesives & Sealants from the private equity firm American Securities LLC for about $1.58 billion.

Royal forecasted to generate $650 million in revenue and $138 million in operating profit during H.B. Fuller’s fiscal year 2017.

The transaction is expected to close in October 2017.

Nasdaq Inc ((NDAQ)) slumped 2.1% or $1.57 to $73.80 after the trading exchange operator said it intends to buy cloud-based content and analytics services provider eVestment Alliance LLC for about $705 million.

The transaction is expected to close in the fourth-quarter.

Tronc Inc ((TRNC)) advanced 2.2% or 32 cents to $14.98 after the parent of the Chicago Tribune and Los Angeles Times publisher said its acquired century-old New York City tabloid and 11 Pulitzer Prizes winner the Daily News.

Under the terms, tronc assumed operational and pension liabilities of the New York Daily News.

Teleflex Inc ((TFX)) increased $1.89 to $212.40 and the medical device maker plans to acquire the privately held urology devices maker NeoTract Inc up to $1.1 billion.

The transaction is expected to close within the next 30 days.

United Technologies Corporation ((UTX)) declined 4.3% or $5.05 to $112.87 after the aerospace products maker agreed to buy airplane parts maker Rockwell Collins Inc. for about $93.33 per share in cash and $46.67 in shares or $23 billion and for a total transaction value of $30 billion, including net debt.

The transaction is expected to close in the third-quarter of 2018.

The defense products maker reaffirmed revenues forecast between $58.5 billion and $59.5 billion and earnings per share in the range of $6.45 to $6.60.