US Mergers and Acquisitions, Recent US Mergers and Acquisitions

By: EconomyWatch   Date: 16 July 2010

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The US mergers and acquisitions have been going on since 1897. The initial development of the mergers and acquisitions in the US can be credited to the development of railroads throughout the country. With the development of the railroads there were a number of horizontal mergers in the US that took advantage of the relaxed economic atmosphere in the US.

US Mergers and Acquisitions in 1916-1929

The second installment of the US mergers and acquisitions took place from 1916 to 1929. One of the distinguishing features of this period was the sharp rise in the price of the shares. In this period the vertical mergers gained priority over the horizontal mergers due to the laws and statutes in place. This trend was stopped by the stock market crisis of 1929.

US Mergers and Acquisitions in 1965-1969

During the five year phase from 1965 to 1969 the conglomerates were the order of the day as far as the US mergers and acquisitions were concerned. This trend was prompted by the antitrust laws that were in operation at that point of time. In 1969 the trend came to a halt as a result of the changes in the antitrust laws.

US Mergers and Acquisitions in 1981-1989

In the years between 1981 and 1989 various types of US mergers and acquisitions found more acceptance. The causes that brought about this situation were decrease in the rates of interest and increase in the prices of the shares. As a result of the legal conditions, the leveraged buyouts gained in popularity. This period is also marked by hostile takeovers, greenmailing and corporate raid.

US Mergers and Acquisitions in 1992-2001

In the years between 1992 to 2001 the US mergers and acquisitions came back in action after the US recovered from the economic recession of the early 90s. The major business houses started taking over companies and paid for these acquisitions with their equity.

US Mergers and Acquisitions from 2003

From 2003 the number of companies merging with others or acquiring other companies has increased. These companies are adopting such business strategies in order to be better equipped to adapt with the intense competition throughout the global market.

 

Recent US Mergers and Acquisitions

Sub-Surface Waste Management of Delaware Inc., which is primarily held by US Microbics Inc has acquired Restic Properties. Platina Energy Group has taken over Enhanced Oil Recovery Inc from UTEK Corp. Parker Hannifin Corp has taken over all the remaining shares of HTR Holding Corp.

Frontera Investment Inc has taken over CW Check Cashing. Carlisle Cos Inc has acquired Carlyle Inc. The deal was worth $200 million. It was subjected to regulatory approval. Key Energy Services has taken over Western Drilling Inc. The deal was worth almost $5 million and the entire amount was paid in cash.

Aurcana Corp has taken over the Shafter Silver Mine in Texas. It was bought from Silver Standard Resources Inc and the deal was worth $42.465 million. From this amount $23 million was to be paid in cash, $9.465 million was to be paid by issuing 15 million common shares and the rest was to be paid through convertible debentures.

The worth of the shares to be issued was based on the closing price of the shares of Aurcana Corp on the 2nd of April 2008, which was to be the day before the announcement of the acquisition was made. The value of each share was $0.631. The entire transaction was subjected to regulatory approval and other traditional closing conventions.

Skilled Healthcare Group Inc has taken over a skilled nursing facility from Redman Resources LLC. The deal was worth $13.2 million. Rite Aid Corp has acquired twelve pharmaceutical retail stores from Spartan Stores Inc. The trade was worth $12.8 million and the entire amount was paid in cash. The deal was subjected to due diligence.

Black Box Corp has taken over UCI Communications LLC. Entropic Communications Inc has taken over Vativ Technologies Inc. The deal was worth $6.9 million. $5.9 million was paid in cash and the rest is supposed to be paid later.

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