It seems all the attention these days are focused on large-scale multi-billion dollar merger and acquisition deals which implies that the much smaller deals are flying under the radar.
Investors paying close attention to smaller M&A deals could find attractive companies that are investing in their own growth – perhaps at the expense of returning cash to shareholders through dividends and stock buybacks which isn’t always the best use of capital.
Here is a roundup of three different M&A deals that may be flying under the radar given the companies smaller market size and unfamiliarity with mainstream investors.
Almost Family Rises 8% On New Deal
Almost Family (NASDAQ: AFAM), a provider of home health nursing services, said on Monday it has agreed to buy a controlling stake in Community Health Systems’ (NYSE: CYH) home health and hospice entity.
Following the completion of the acquisition, Almost Family will operate 340 branches across 26 states with an annual revenue run rate of more than $800 million.
Almost Family’s stock rose more than eight percent on Monday following the announcement.
Alon USA & Delek Energy
Alon USA Energy (NYSE: ALJ), a small-cap independent refiner and marketer of petroleum products, announced on Monday it received an offer from Delek US Holdings (NYSE: DK) to acquire all of the outstanding shares of common stock it doesn’t already own.
Delek is an integrated energy business focused on petroleum refining and completed the purchase of 48 percent of Alon USA Energy back in 2015.
Delek proposed an all-stock transaction at a fixed exchange ratio of 0.44 shares of its own stock for each share of Alon.
A special committee that is comprised of directors independent of Delek will review the proposal.
Dril-Quip Acquires A 100-Year Old Company
Dril-Quip (NYSE: DRQ), a manufacturer of engineered offshore drilling and production equipment, announced on Monday it has agreed to acquire TIW Corporation, a company founded in 1917 that manufactures liner hanger systems for onshore and offshore applications.
The acquisition actually marks Dril-Quip’s first ever and the acquired entity’s products and services compliments its own offerings.
In addition, TIW’s onshore presence in the Middle East and South America provides Dril-Quip with immediate entry into new geographies which creates incremental market opportunities.