Deal Pipeline
Tuesday 28 June 2016
The following is a list of deals covered in detail by M and A Navigator this week:

-CHINA'S SMIC ACQUIRES ITALIAN SEMICONDUCTOR FOUNDRY LFOUNDRY FOR EUR 49M
Chinese semiconductor foundry Semiconductor Manufacturing International Corp. (NYSE: SMI) has signed an agreement with LFoundry Europe GmbH and Marsica Innovation S.p.A. to purchase a 70% stake of Italy-based LFoundry for a consideration of EUR 49m (USD 54.15m), the company said.
LFoundry is an integrated circuit wafer foundry headquartered in Italy, which is owned by LFE and MI. At the closing, SMIC, LFE and MI will own 70%, 15% and 15% of the corporate capital of the target respectively.
Status: Closed

-NORTHERN TRANSPORTATION SEEKS BUYER FOLLOWING COURT RULING
Canadian pan-Arctic marine transporation services Northern Transportation Co Ltd. has hired Blackhill Partners, LLC as financial advisor as it seeks parties interested in acquiring or investing in the business or the assets of the company, Northern said.
This week, Blackhill Partners launched proceedings and obtained court protection under the Companies' Creditors Arrangement Act pursuant to an initial order granted by the Court of Queen's Bench, in the Province of Alberta.
Status: Talks

-PATENT LAW FIRM MURGITROYD ACQUIRES TRADE, ASSETS FROM MDB CAPITAL GROUP PANTEVEST
UK-based intellectual property law firm Murgitroyd Group plc's (LSE: MUR) principal operating subsidiary, Murgitroyd and Co. Ltd., has completed the acquisition of certain trade and assets from Dallas-based MDB Capital Group, LLC and Managua-registered Patentvest S.A., including employee and client contracts of MDB's IP Software and Services Group, the firm said.
The consideration of USD 2.43m, paid at completion, included the value of the tangible assets, IT systems and records, and will be part-funded through a new term loan facility with the balance funded from existing group resources.
Status: Closed

-SOUTHERN WATER SERVICES TO SELL NON-HOUSEHOLD RETAIL BUSINESS
UK-based water utility operator Southern Water Services Ltd. has agreed to dispose of its non-household retail business to Scottish Water Business Stream Ltd., the company said.
According to the company, the water industry in England is currently preparing for the introduction of retail competition which will enable all non-household customers including businesses such as factories and shops, churches, charities, and public sector organisations, to switch retailers.
Status: Agreed

-TARGET HEALTHCARE REIT BUYS CHELTENHAM, UK CARE HOME
UK-based care homes investor Target Healthcare REIT Ltd. (LSE: THRL) has completed the acquisition of a modern, purpose built care home in Cheltenham, Gloucestershire for approximately GBP 7.9m (USD 10.57m) including acquisition costs, the company said.
Target said that the home was completed in 2010 and the striking modern design was award-nominated. It comprises 66 bedrooms with full en-suite bathrooms with wetroom showers, spread over four floors.
Status: Closed

-MXC CAPITAL SELLS 5.8M SHARES IN UK IT FIRM REDCENTRIC
UK-based merchant bank MXC Capital Ltd. (AIM: MXCP) has sold 5.8m shares in UK-based IT managed services firm Redcentric plc (LSE: RCN) at a price of 180 pence per share resulting in gross proceeds of GBP 10.44m (USD 13.97m), the bank said.
MXC was an original shareholder in Redcentric at the time of its demerger from Redstone plc and subsequent IPO. The original cost of MXC's investment in Redcentric was GBP3.4 m, hence the Disposal will result in a realised gain of GBP 7.04m.
Status: Closed

-ON SEMICONDUCTOR AGAIN EXTENDS TENDER OFFER TO ACQUIRE FAIRCHILD
US-based chipmaker ON Semiconductor Corp. (NASDAQ: ON) has again extended its tender offer to purchase all of the outstanding shares of common stock of US-based chipmaker Fairchild Semiconductor International Inc. (NASDAQ: FCS) for USD 20.00 per share in cash, this time until 7 July.
The deadline has been extended before, most recently from 9 June until 23 June12, and before that from May to 9 June. Prior to that, it was extended from 12 May to 26 May. Before that it was extended from 28 April to 12 May, and before that from 14 April to 28 April. Previously, it was extended 31 March to 14 April.
Status: Agreed

-PLATINUM EQUITY UPS OFFER FOR TEST EQUIPMENT, COMPUTER RENTAL FIRM ELECTRO RENT
US-based private equity firm Platinum Equity has increased its offer for US-based electronic test equipment, personal computers and server renting and leasing company Electro Rent Corp. (NASDAQ: ELRC), from USD 13.12 per share to USD 15.50 per in cash, the company said.
The previous deal, entered into earlier in June, valued the company at USD 323.4m. This new price values the deal at more than USD 382m.
Status: Agreed

-PFIZER CLOSES USD 5.2BN ACQUISITION OF INFLAMMATION, IMMUNOLOGY SPECIALIST ANACOR
US-based drugmakers Pfizer Inc. (NYSE: PFE) has closed its acquisition of Anacor Pharmaceuticals, Inc. (NASDAQ: ANAC) for USD 99.25 per Anacor share, in cash, for a total transaction value, net of cash, of approximately USD 5.2bn, the company said.
This total assumes the conversion of Anacor's outstanding convertible notes. Anacor's flagship asset, crisaborole, a differentiated non-steroidal topical PDE4 inhibitor with anti-inflammatory properties, is currently under review by the US FDA for the treatment of mild-to-moderate atopic dermatitis, commonly referred to as eczema.
Status: Closed

-FRENCH COMPETITION AUTHORITY CLEARS GECINA'S ACQUISITION OF FONCIERE DE PARIS
French property company Gecina (PAR: GFC) has received merger control clearance from the French Competition Authority for its proposed acquisition of French real estate investment trust Foncière de Paris, the company said.
Gecina's public offer for Foncière de Paris securities is therefore no longer subject to competition clearance. In May, Gecina proposed to buy the REIT for EUR 150 per share in cash or five Gecina shares for every five Foncière de Paris shares held.
Status: Agreed

-PACIFIC LIFE CLOSES ACQUISITION OF GENWORTH TERM LIFE NEW BUSINESS PLATFORM
US-based insurer Pacific Life Insurance Co has completed its acquisition of the term life new business platform from Genworth Financial, the company said.
Pacific Life said that the technology and term-focused operational capabilities involved in this transaction will allow it to extend its ability to fulfill the financial protection needs of a broader consumer market without disruption to Pacific Life's current business platforms and sales channels.
Status: Closed

-ID LOGISTICS TO ACQUIRE CONTRACT LOGISTICS OPERATOR LOGITERS
French contract logistics group ID Logistics (PAR: IDL) and investment firm PE fund Corpfin Capital have signed an agreement for ID Logistics to acquire 100% of Spain/Portugal contract logistics operator Logiters, the group said.
The transaction is based on an enterprise value of EUR 85m (USD 93.94m) fully paid in cash. ID Logistics will keep a sound financial structure with a leverage ratio of approximately 1.2x proforma EBITDA post acquisition.
Status: Agreed

-JAKEMANS CHANGES NAME FOLLOWING ACQUISITION OF COUGH DROP BRAND SMITH BROS
UK-based supplements and OTC medicines manufacturer LanesHealth's Jakemans Inc. US subsidiary has changed its name to Lanes Brands in a move to better reflect its portfolio, the company said.
In May 2016 the company acquired the Smith Bros. brand, a line of throat drops, established since 1847. This reinforces projected growth under the name change to Lanes Brands. This expanding portfolio also includes the recent US introduction of GOPO Rosehip with Galactolipids joint support supplement.
Status: Closed

-AUSTRALIAN MINER AURUM TO BUY ISRAELI WIRELESS CHARGER MAKER HUMAVOX
Australia-based gold and copper exploration company Aurum, Inc (OTCBB: AURM) has entered into a binding term sheet with the shareholders of Israel-based wireless charger maker Humavox Ltd, the company said.
According to the term sheet, Aurum will acquire 100% of the shares of Humavox and 100% of the warrants and options to acquire shares of Humavox in exchange for the issue of shares of common stock of Aurum representing 50% of the shares of common stock of Aurum post issue on a fully-diluted basis, including the investment of an amount of USD 16m in Humavox.
Status: Agreed

-MOSAIC COMMUNITY SERVICES TO ACQUIRE NON-PROFIT MENTAL HEALTH SERVICES PROVIDER ALLIANCE
US-based non-profit mental health and addiction services provider Mosaic Community Services has agreed to acquire US-based non-profit provider Alliance, Inc., the company said.
Both companies are within the Sheppard Pratt Health System. This merge is to become effective 1 July 2016. The newly-expanded Mosaic will have an annual operating budget of approximately USD 70m, serve nearly 30,000 children, adolescents, adults and families across Central Maryland, and employ 1,000 people.
Status: Agreed

-DOMTAR BUYS ASSETS OF ABSORBENT BODY LINER MAKER BUTTERFLY HEALTH
US-based absorbent hygiene product maker Domtar Corp. (NYSE: UFS) (TSX: UFS) has purchased the assets of California-based absorbent body liner maker Butterfly Health Inc., the company said.
Domtar will leverage its global footprint to expand commercialization to additional healthcare markets, with a focus on Europe. Butterfly body liners offer discreet, secure protection for accidental bowel leakage. Domtar Personal Care designs, manufactures and sells a range of incontinence solutions for adults, children and infants. Brands include Attends, Attends Discreet and Comfees.
Status: Closed

-NOVAERUS ACQUIRES INDOOR AIR QUALITY SPECIALIST PLASMA AIR
US-based airborne pathogen control provider Novaerus has acquired US-based indoor air quality specialist Plasma Air International, the company said.
The acquisition brings an HVAC-based, air cleansing technology solution to Novaerus, which offers a patented pathogen control technology with a significant presence in healthcare, education and hospitality markets across the globe. Plasma Air International offers a complementary solution in these markets, as well as residential, waste management and retail spaces.
Status: Closed

-MEETME TO ACQUIRE FLIRTING SOCIAL NETWORK SKOUT IN USD 83M DEAL
US-based social network MeetMe, Inc. (NASDAQ: MEET) has agreed to acquire US-based flirting social network Skout for USD 28.5m in cash and approximately 5.37m common shares of MeetMe, implying an enterprise value of USD 54.6m based on MeetMe's closing stock price on June 24, 2016, the company said.
The company expects to fund the cash portion of the acquisition primarily from MeetMe cash on hand and cash from operations, and potentially from other sources of financing available to MeetMe. This acquisition promotes MeetMe and Skout's shared vision to create the largest global service for meeting and chatting with new people. The acquisition is expected to provide greater scale for monetization and increased profitability for the combined company.
Status: Agreed

-AGILENT TECHNOLOGIES TO ACQUIRE ASSETS OF LABORATORY MANAGEMENT SOFTWARE FIRM ILAB
US-based application-focused solutions provider Agilent Technologies Inc. (NYSE: A) has agreed to acquire the assets of Boston, Massachusetts-based laboratory management solutions provider iLab Solutions, LLC, the company said.
The acquisition is expected to be completed in early August, subject to local laws and regulations and customary closing conditions. This acquisition includes iLab's technology, intellectual property and product portfolio, as well as employee talent.
Status: Agreed

-CHARLES RIVER LABORATORIES ACQUIRES CONTRACT RESEARCH FIRM BLUE STREAM
US-based contract research company Charles River Laboratories International, Inc. (NYSE: CRL) has acquired Massachusetts-based analytical contract research company Blue Stream Laboratories, Inc., the company said.
Combining Blue Stream with Charles River's existing discovery, safety assessment, and biologics capabilities creates a provider with the ability to support biologic and biosimilar development from characterization through clinical testing and commercialisation.
Status: Closed

-AXALTA COATING SYSTEMS TO ACQUIRE PAINT MAKER DURA COAT PRODUCTS
US-based liquid and powder coatings supplier Axalta Coating Systems (NYSE: AXTA) has agreed to acquire US-based metal coil coatings maker Dura Coat Products, the company said.
Pursuant to the agreement, Axalta will initially purchase a majority stake in Dura Coat at the closing which is expected to occur in 3Q16 and the remaining outstanding shares by January 2019, subject to required regulatory approvals and other customary closing conditions. Founded in 1986, Dura Coat operates two coatings manufacturing plants in Riverside, California and Huntsville, Alabama.
Status: Agreed

-ELECTROLUX ACQUIRES ASIA PACIFIC WINE CABINET MAKER WINTEC
Sweden-based household appliance maker Electrolux (STO: ELUXA) (STO: ELUXB) has agreed to acquire Australia- and Singapore-based climate-controlled wine cabinets supplier Vintec, the company said.
With annual sales of more than AUD 22m (approx. SEK 139m), Vintec sells products under the brands Vintec and Transtherm for both residential and professional customers. About two thirds of sales are in Australia, where Vintec also engages over 9,000 consumers through the Vintec Club.
Status: Closed

-CAROUSEL INDUSTRIES ACQUIRES COMMUNICATIONS SERVICES FIRM SOURCE
US-based communication and network technology provider Carousel Industries has acquired Dallas, Texas-based unified communications solutions and services provider Source, Inc., the company said.
Founded in 1971 and with customers located nationwide, Source brings to Carousel a blend of capabilities and expertise in asset management and logistics, technology refurbishment and repair, as well as disaster recovery, e911 implementation, and IT services.
Status: Closed