Metro in $4.5B Deal with Jean Coutu

Mukesh Buch
02 Oct, 2017
New York City

Cal-Maine Foods net loss narrowed after sales soared 10%. Metro agreed to buy the Jean Coutu Group for C$4.5 billion. TerraForm Power net swung to profit but revenues declined.

[R]2:05 PM New York – Cal-Maine Foods net loss narrowed after sales soared 10%. Metro agreed to buy the Jean Coutu Group for C$4.5 billion. TerraForm Power net swung to profit but revenues declined.[/R]

Tollbooth Index slipped 33.39 or 0.3% to 12,631.38.

Earnings Review

Bain Capital, LP, Nikkei reported that the U.S.-based privately held equity firm plans to acquire Japan-based advertising agency Asatsu-DK Inc for 3,660 yen per share about $1.3 billion or 150 billion yen.

Cal-Maine Foods Inc ((CALM)) gained 25 cents to $41.35 after the shell eggs producer reported net sales in the first-quarter ending on September 2 soared 9.6% from a year ago to $262.8 million.

Net loss in the quarter narrowed to $16 million or 33 cents per diluted share from $30.9 million or 64 cents in the same quarter last year.

Metro, Inc ((MRU)) dropped 1.2% or 52 cents to $42.39 after the Canada-based food and pharmaceutical products distributor agreed to acquire Jean Coutu Group for $24.50 per share or about C$4.5 billion.

Under the terms, shareholders of Jean Coutu will receive 75% in cash and 25% in Metro common shares.

The transaction is expected to close in the fiscal first-half of 2018.

TerraForm Power Inc ((TERP)) slipped 1.1% or 15 cents to $13.07 after the wind, solar and clean energy producer said revenues in the second-quarter ending in June declined 9% from a year ago to $170.4 million.

Net in the quarter swung to profit $7.4 million or 6 cents per diluted share from a loss of $20.9 million or 23 cents in the same quarter last year.