Deals: Blame Canada

In our M&A Roundup for the week ending July 6, the year-to-date record of $100-billion-plus in activity is led by the biggest deal ever north of the border.

GSO Capital Partners LP to buy Reddy Ice Holdings Inc. for $1 billion

The definitive agreement calls for the Dallas-based producer and distributor of packaged ice to be acquired for $31.25 a share by New York-based GSO, a registered alternative investment manager with about $8 billion in assets under management. The offer provides a premium of 9.6 percent. Debt financing for the transaction has been committed by Morgan Stanley Senior Funding Inc., subject to customary terms and conditions. The agreement permits Reddy Ice to continue paying regular quarterly dividends at its current annual rate of $1.68 a share prior to the merger’s close. If the merger does not close prior to Nov. 1, 2007, the company will be permitted to declare a partial quarterly dividend for the portion of the fourth quarter which occurs prior to the closing based on the current annual dividend rate. Expected close is in the fourth quarter.
Seller financial advisor: Houlihan Lokey
Bidder financial advisor: Not Available
Seller legal advisor: DLA Piper
Bidder legal advisor: Kirkland & Ellis

Walgreen Co. to buy Option Care Inc. for $742 million

A definitive agreement has been signed by the boards of both Buffalo Grove, Ill.-based Option Careand Deerfield, Ill.-based Walgreen. Option Care is a provider of specialty pharmacy services and home infusion pharmacy services to patients with acute or chronic conditions. Walgreen is a retail drugstore chain’ whose product lines include prescription and non-prescription drugs. The $19.50-a-share price offers a premium of 26.6 percent. John N. Kapoor, Option Care’s founder and a 22 percent shareholder, has committed to tender his shares.
Seller financial advisor: UBS
Bidder financial advisor: Peter J Solomon Company
Seller legal advisor: Bryan Cave
Bidder legal advisor: Wachtell Lipton Rosen & Katz

source: mergermarket


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