Genuine Parts Acquires Alliance Automotive, Horton Lowers Cash Flow Estimate

Mukesh Buch
25 Sep, 2017
New York City

D. R. Horton lowered its fiscal 2017 cash flow estimate. Genuine Parts agreed to acquire the U.K.-based Alliance Automotive for $2 billion. GE agreed to sell its industrial solutions unit to ABB for $2.6 billion. KKR raised its offer for Pepper Group.

[R]2:50 PM New York – D. R. Horton lowered its fiscal 2017 cash flow estimate. Genuine Parts agreed to acquire the U.K.-based Alliance Automotive for $2 billion. GE agreed to sell its industrial solutions unit to ABB for $2.6 billion. KKR raised its offer for Pepper Group.[/R]

Tollbooth Index slumped 126.72 or 1% to 12,406.32.

Earnings Review

Ennis, Inc ((EBF)) rose 15 cents to $19.50 after the printing services provider said revenues in the second-quarter ending in August jumped 4.1% from a year ago to $94.9 million.

Net income in the quarter soared 25% to $8.5 million or 34 cents per diluted share from $6.8 million or 26 cents in the same quarter last year.

D. R. Horton Inc ((DHI)) slid 1 cent to $36.89 after the homebuilder lowered its fiscal 2017 cash flow from operations estimate to $150 million from the previous forecast of about $300 million after the recent hurricanes.

Genuine Parts Company ((GPC)) surged 7.7% or $6.80 to $94.78 after the automobile parts provider agreed to acquire the U.K.-based privately held rival Alliance Automotive Group from private-equity funds managed by Blackstone and Alliances'' co-founders for about $2 billion, including debt.

The transaction is expected to close in the fourth-quarter of 2017.

General Electric Company ((GE)) gained 19 cents to $25.06 after the diversified industrial conglomerate agreed to sell its industrial solutions business to Switzerland-based ABB Ltd for about $2.6 billion.

Hellman & Friedman LLC, the private equity group approached the Denmark-based digital payment services provider Nets A/S about $5.3 billion or 33.1 billion kronor.

KKR & Co. L.P ((KKR)) increased 1.1% or 21 cents to $19.94 and the global investment manager raised its offer for Australia-based non-bank lender Pepper Group Ltd.

The improved proposal from the Red Hot Australia Bidco Pty Ltd owned by KKR Credit Advisors (US) Ltd proposed $3.70 per share or $543 million.

Pepper Group Ltd stock in Australia Stock Exchange jumped 4.3% to $3.65.