With the 2009 merger-and-acquisition game settling down to a period of mid-sized deals in North America, volume still more than trebled last week, thanks largely to Abbott Laboratories’ $2.86-billion purchase of optometric technology company Advanced Medical Optics Inc.
That transaction was followed by two deals worth more than $300 million: the sale by Constellation Brands of its spirits business to New Orleans-based Sazerac Co., and American International Group Inc.’s sale of its AIG Life Insurance Co. of Canada unit to Bank of Montreal.
The 36 deals struck in the week ended Sunday, Jan. 18, were one fewer that in the previous week, according to data provided to CFO.com by mergermarket. However, last week’s deals rang up a $4.23 billion total value, compared with $1.42 billion represented by 37 transactions.
For the year-to-date, 83 deals now have been struck, worth $5.99 billion. At the same time last year, 284 transactions accounted for $49.15 billion.
Abbott Laboratories to buy Advanced Medical Optics Inc. for $2.86 billion
Santa Ana, Calif.-based Advanced Medical, an optometric technology and support company, definitively agreed to be acquired by Abbott Park, Ill.-based health care company Abbott Laboratories for $22 a share, a premium of 148.58 percent. Both boards approved the merger, which had an implied equity value of about $1.324 billion, and is expected to close in the current quarter.
Seller financial advisor: Goldman Sachs; UBS
Bidder financial advisor: Morgan Stanley
Seller legal advisor: Dewey & LeBoeuf (advising UBS); Latham & Watkins (advising Goldman Sachs); Skadden Arps Slate Meagher & Flom
Bidder legal advisor: Baker & McKenzie; Jones Day
Sazerac Co. to buy the spirits business of Constellation Brands Inc. for $334 million
Fairport, N.Y.-based alcoholic beverage producer and distributor Constellation Brands definitively agreed to sell its spirits business to New Orleans-based distilleries owner and operator Sazerac for a price that includes $274 million cash and $60 million through medium-term financing by Constellation at market interest rates. The sale will provide Constellation with net after-tax proceeds of $210 million. The sold businesses had 2008 revenues of $200 million. The transaction is expected to close at the end of February.
Seller financial advisor: JPMorgan
Bidder financial advisor: Internal
Seller legal advisor: Nixon Peabody
Bidder legal advisor: Cooley Godward Kronish
Bank of Montreal to buy AIG Life Insurance Co. of Canada from American International Group Inc. for $316 million
Montreal-based BMO Financial Group, a financial services group, agreed to acquire Toronto-based AIG Life of Canada from New York-based AIG in a cash transaction expected to close by June 1.
Seller financial advisor: JPMorgan; Morgan Stanley
Bidder financial advisor: BMO Capital Markets
Seller legal advisor: Debevoise & Plimpton; Stikeman Elliott
Bidder legal advisor: Osler Hoskin & Harcourt