Thursday’s Non-Twitter Related M&A Update

Did You Miss These M&A Deals From Tuesday?
Tuesday’s Non AT&T - Time Warner M&A Recap

Published: 14/10/2016 – – Follow us on Twitter: @SMDailyco


As of the end of Thursday’s trading session, Twitter (NYSE: TWTR) has yet to be acquired.  With no notable news on that front, here is a summary of some other M&A deals that may have flown under the radar.

Kellogg Acquires A Brazilian Food Company

Kellogg Company (NYSE: K) announced on Thursday it has entered into an agreement to acquire Ritmo Investimentos which is the controlling shareholder of Parati, an iconic Brazilian food company for $429 million.

Parati is the parent company behind regional iconic brands including Parati, Padua, Minueto, Zoo Cartoon and Hot Cracker biscuits.  The Brazilian company’s net sales are expected to be around $190 million at the current exchange rate.

The acquisition represents Kellogg’s largest in Latin America and fits in with its strategy to become a global snacking giant and boost its presence in emerging markets.  The deal gives Kellogg access to retail stores of all sizes across Brazil.

The acquisition also marks Kellogg’s fourth acquisition in an emerging economy over the past two years.

Oil & Gas Deal

Circor International (NYSE: CIR), a provider of valves and other engineered products for clients in the oil & gas and other sectors, announced on Thursday it has agreed to acquire Critical Flow Solutions (CFS) for $210 million.

CFS manufactures critical severe-service equipment for refining operations.  The company recorded revenue of around $120 million and EBITDA margins over 20 percent in its most recent quarter.

Circor expects the deal to be accretive in the first 12 months of the combined operations.

An Even Bigger Oil & Gas Deal

RSP Permian (NYSE: RSPP), an independent oil and natural gas company with operations in the Permian Basin of West Texas, announced on Thursday it has entered into an agreement to acquire Silver Hill Energy Partners and Silver Hill E&P II for $1.25 billion in cash and 31.0 million shares of its common stock, valuing the total deal at $2.4 billion.

Silver Hill’s shareholders will collectively own approximately 20 percent of RSP’s total outstanding shares.

The transaction is expected to be accretive to RSP on a cash flow, production and net asset value basis.  The deal is also expected to create substantial scale with a combined current production of 50 million barrels of energy equivalent per day.