The Special Situation Report #92: 12/17 Roundup

Dec 17, 2023

Strategic Alternatives & Ongoing Situations

Choice Hotels International (CHH) commenced an exchange offer to acquire Wyndham Hotels & Resorts (WH) (Press Release, Presentation)
HireRight (HRT) received a non-binding acquisition proposal from General Atlantic and Stone Point Capital (Press Release)
Taro Pharmaceuticals (TARO) agreed in principle to a takeover proposal from Sun Pharmaceutical (Filing)
Terran Orbital (LLAP) shares sank amid a disclosure that the company is conducting a formal review of strategic alternatives (Filing)

Rumors

Callon Petroleum (CPE) reportedly evaluating strategic options after receiving takeover interest (Bloomberg)
Cigna (CI) reportedly ended its attempt to negotiate an acquisition of rival Humana (HUM) after the pair failed to agree on price (Reuters)
DocuSign (DOCU) reportedly working with advisers to explore a sale (WSJ)
Endeavor Group (EDR) dropped amid a report that a sale to Silver Lake is not imminent (Seeking Alpha)
Macy’s (M) reportedly received a takeover proposal from Arkhouse Management and Brigade Capital Management (WSJ); Sycamore Partners reportedly eyeing a bid (WWD)
PGT Innovations (PGTI) reportedly rejected a takeover bid from Miter Brands (Reuters)
Shift4 Payments (FOUR) reportedly draws interest from Global Payments (GPN) (Bloomberg); Global Payments denied takeover talks (Reuters)
US Steel’s (X) board of directors is expected to meet again this weekend as it works to decide on takeover offers (Seeking Alpha)

Advance Auto Parts (AAP) activist investor Legion Partners Asset Management urged the company to proceed with the divestiture of its WorldPac stores (Bloomberg)
Gildan Activewear (GIL) shareholders Browning West and Turtle Creek wrote letters to replace its chairman and reverse a recent decision to oust its CEO (WSJ)
Globalstar (GSAT) investor Anson Funds said the company is an attractive acquisition target and should consider selling itself (Bloomberg)
Nevro Corp (NVRO) activist Engaged Capital is calling for the company to improve profitability and stop making acquisitions; believes it is a likely acquisition target (Bloomberg)
SomaLogic (SLGC) shareholder Madryn Asset Management issued a letter in opposition of the Standard BioTools (LAB) merger deal, saying it undervalues SLGC and is the result of a flawed process (Filing)
TriMas Corporation (TRS) investor Barington Capital is urging the company to focus on its packaging business and divest non-core assets (Press Release)
Trimble Inc. (TRMB) activist Jana Partners has taken a position and is urging the software company to avoid more large acquisitions (Bloomberg)
Twilio (TWLO) reportedly hired Qatalyst Partners to advise it on activism defense (CNBC)

Spin-Offs

BlackBerry (BB) reversed plans and will no longer spin off its internet-of-things business (Press Release)
NIO Inc. (NIO) reportedly plans to spin-off its battery unit (Reuters)
Vivendi (VIVHY) shares gained on plans to break up the company (Press Release)

Other

Carrier (CARR) will sell its global commercial refrigeration business to its longtime joint venture partner Haier (Press Release)
Envestnet (ENV) reportedly exploring a sale of its data aggregation business Yodlee (Bloomberg)
Farfetch (FTCH) reportedly in discussions to secure emergency funding from private equity firm Apollo Global (APO) (Reuters)
Walgreen Boots (WBA) reportedly restarting talks on a possible sale of its UK-based Boots drug chain (Reuters)

Target / Acquirer – Approximate Transaction Enterprise Value

Financials

Codorus Valley Bancorp (CVLY) / Orrstown Financial Services (ORRF) – $207mm (Press Release)

Healthcare

Industrials

Eagle Bulk Shipping (EGLE) / Star Bulk Carriers (SBLK) – $1bn (Press Release, Presentation)
Hollysys Automation (HOLI) /Ascendent Capital Partners – $1.7bn (Press Release)

Technology, Media & Telecommunications

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The content herein is informational and should not be relied upon as fact. Do your own diligence before making any investment decisions.

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