Insider Trading : Fri 5/12/23

Notable purchases -- CEO adds to NRDS; notable sales -- 10% owner active in WW

Buyers:

• BFH 10% owner Turtle Creek bought 190,000 shares at $25.27 - $26.87 worth ~$5.0 mln.
• CODI 10% owner bought 34,796 shares at $18.74 - $18.85 worth ~$654K.
• COIN Director bought 810,000 shares at $59.92 - $63.74 worth ~$50.0 mln.
• CPE Director bought 50,000 shares at $30.24 - $31.63 worth ~$1.5 mln.
• NRDS CEO bought 30,838 shares at $8.35 - $8.39 worth ~$258K.
• PACK CEO and Executive Chairman and one (1) Director bought a total of 116,500 shares at $2.85 - $3.30 worth ~$347K.
• SNEX Head-Retail & Foreign Exchange bought 3,000 shares at ~$84.1766 worth ~$253K.
• TFIN Director bought 9,995 shares at $47.64 - $48.80 worth ~$479K.

Sellers:

• AGNC Director, Executive Chair sold 500,000 shares at $9.25 - $9.35 worth ~$4.7 mln.
• APO 10% owner sold 572,051 shares at $62.50 - $64.70 worth ~$36.3 mln.
• AVT Director sold 72,851 shares at $41.65 - $41.93 worth ~$3.0 mln.
• CORT Chief Business Officer sold 44,000 shares at $23.81 - $24.16 worth ~$1.1 mln.
• EME EVP - Shared Services sold 13,462 shares at $165.00 - $167.73 worth ~$2.2 mln.
• JPM President & COO, CEO CIB sold 113,640 shares at ~$135.9274 worth ~$15.4 mln.
• LII EVP & Chief Financial Officer sold 2,808 shares at $282.14 - $282.49 worth ~$792K.
• NVEC President and CEO sold 20,000 shares at $87.17 worth ~$1.7 mln.
• OLED Director sold 15,000 shares at $136.61 - $137.24 worth ~$2.1 mln.
• ORLY EV Chairman of the Board sold 1,000 shares at ~$950.4487 worth ~$950K.
• POOL General Counsel/Secretary sold 2,333 shares at $352.00 worth ~$821K.
• SOFI Chief Technology Officer sold 200,000 shares at $5.46 - $5.475 worth ~$1.1 mln.
• UFPT Chief Financial Officer sold 7,354 shares at $142.00 - $142.50 worth ~$1.0 mln.
• WW 10% owner sold 14,818,300 shares at ~$7.15 worth ~$105.95 mln.

-=Tenneco (TEN) to be acquired by Apollo (APO) funds for $7.1 billion

•  Tenneco shares were skyrocketing Wednesday after the automotive parts manufacturer said it would be acquired and taken private by Apollo Funds for $7.1 billion, including debt. The deal comes just one day after another parts maker, Meritor, was bought.

Tenneco agrees to be acquired by Apollo (APO) funds for purchase price of $20.00/share in cash 

• Tenneco has entered into a definitive agreement to be acquired by funds managed by affiliates of Apollo in an all-cash transaction with an enterprise valuation of approx. $7.1 bln, including debt.
• The purchase price of $20.00/share represents a 100.4% premium over the company's closing share price of $9.98 on February 22 and a 71.6% premium over the company's unaffected 90-day VWAP.
• Upon completion of the transaction, Tenneco's shares will no longer trade on the NYSE, and Tenneco will become a private company. Tenneco will continue to operate under the Tenneco name and brand and maintain a global presence.
• The transaction, which has been unanimously approved by the Tenneco Board of Directors, is expected to close in the second half of 2022.

-=Michaels Stores (MIK) to be taken private in $3.3 billion deal

 

Arts-and-crafts retailer Michaels Stores and funds managed by affiliates of Apollo Global Management (APO) announce that they have entered into a definitive merger agreement pursuant to which investment funds managed by affiliates of Apollo have agreed to acquire the Company in a transaction that values Michaels at an equity value of approximately $3.3 bln

Under the terms of the agreement, which has been unanimously approved by the Michaels Board of Directors, Apollo will commence a tender offer to acquire all outstanding shares of Michaels for $22.00 per share in cash. The purchase price represents a 47% premium to the closing stock price on February 26, 2021 of $15.00 per share and a 78% premium to the 90-day volume-weighted average price.

The closing of the transaction is expected to close in Michaels' first half of the Company's fiscal year. Following the successful completion of the tender offer, Apollo managed funds will acquire all remaining shares not tendered in the tender offer through a second-step merger at the same price. The transaction will be financed through a combination of equity provided by Apollo managed funds as well as a committed debt financing package to be provided by Credit Suisse, Barclays, Wells Fargo, RBC Capital Markets, Deutsche Bank, Mizuho, and Bank of America.

Upon the completion of the transaction, Michaels will become a privately held company and shares of MIK common stock will no longer be listed on any public market.

Transaction valued at $5.0 bln.

=Apollo Global Management (APO) reported earnings on Thur 30 Jan 20 (b/o)

• The stock almost doubled last year as the company switched from a partnership to a corporation.

Total assets under management climbed to $331 billion driven by $10.5 billion of inflows during the quarter, primarily from growth of Athene and across the credit platform.Distributable earnings rose to $1.10 cents a share, beating the average analyst estimate of 73 cents.Apollo’s private equity portfolio appreciated 4% in the quarter and 16% for the year.Credit strategies took in $40 billion of fee-generating capital during the year.

The shares tumbled as much as 9.1%, the biggest intraday drop since November 2017. They traded at $47.14 at 12:05 p.m. in New York, down 7.9%. Rivals Blackstone Group Inc. and KKR & Co. were down roughly 2%.

Margins should also be similar to last year, executives said on the company’s fourth-quarter conference call.

The comments came after the firm reported earnings that exceeded estimates. Private equity firms are raking in record sums as yield-starved investors seek to bolster returns. Apollo took in $10.5 billion in capital during the period, bringing fundraising for the year to $64 billion, according to a statement Thursday.

Apollo, led by billionaire Leon Black, managed to benefit from asset sales during a period of high valuations. The New York-based company returned $5.5 billion to investors in the quarter, more than double the year-earlier period. The increase was driven in part by the sale of digital infrastructure company Presidio Inc. for $2.2 billion.

Earnings this week : Jan 27 - 31, 20 (wk 5)

Monday (Jan 27)

• Morning: ARLP ARNC BOH DHI HMST NWBI SALT S
• Afternoon: ASH BRO CR ELS FFIV GGG HTLF IBTX JJSF JNPR LRN NBTB PKI RMBS SANM SSB TCF WSBC WHR

Tuesday (Jan 28)

• Morning: MMM AOS ALV CIT FBP FBC GPK HOG HCA LEA LMT MKC NUE PCAR PNR PFE PHG PII POL BPOP PHM SAP UTX XRX
• Afternoon: AMD ALK AAPL BXP CHRW CNI CMRE EBAY EQR FCF FHB MTSI MXIM MRCY MSTR MKSI MINI NVR OSIS PFG RGA RXN SLGN SKY SBUX SYK TRMK UMBF WRB XLNX

Wednesday (Jan 29)

• Morning: ANTM T ADP AVY BA EAT CP GIB CVLT GLW DOW DT EVR EXTR FCFS GD GE HES IR IVZ KNX LFUS MPC MKTX MA MCD MPLX NDAQ NYCB NSC NVS OSK PGR PB ROK ROL RES SC SNDR SMG SILC SLAB SWK SXC TROV TEL TXT
• Wednesday (Jan 29)
• Afternoon: AGNC ALGN ALGT AMP ADM AZPN AXS AX BDN CACI CLS CMPR CRUS CNMD CLB CREE DLB DRE ENVA ESS FB FBHS HOLX IEX ILMN ISBC KLIC LRCX LSTR LVS LM LLNW MLNX MTH MEOH MSFT MAA MDLZ MUSA EGOV PKG PYPL QRVO SEIC NOW TSLA TTEK URI VAR

Thursday (Jan 30)

• Morning: ALXN ADS FLWS MO ABC APO APTV AXTA BIIB BX BGG BC CRS CMS CNXM CNX KO CTVA CFR DHR DOV DD LLY EPD BEN GWW HSY IP KIM KEX LAZ MMP MMC MDC MTOR MIXT MNRO MSCI MUR NTCT NOC PH DGX RTN RFP ROP RDS.A SHW SPB SF TMO TSCO TFC UBSI UPS VLO VLY VZ WEC WCC WRK XEL
• Afternoon: AMZN AMGN AIV ARCB AJG BZH EPAY CPT CVCO CE CACC DECK EMN EW EA NVST FII FICO FLEX HA HAYN LEVI LPLA MATW MTX MITK NFG NATI OTEX POWI PFPT RMD RHI SIGI SKYW X VRTX V WDC

Friday (Jan 31) 

• Morning: ADNT AON BERY BAH BR CAT CHTR CVX CHD CL XOM GNTX HTH HON IDXX ITW IMO JCI KKR LYB MAN PSX PSXP PFS SBSI VRTS WY WETF

MONDAY

Arconic, DR Horton, Sprint, F5 Networks, Whirlpool

TUESDAY

3M, Lockheed Martin, LVMH, Pfizer, United Tech, Harley-Davidson, Xerox, PulteGroup, Advanced Micro, Apple, Starbucks, Alaska Air, eBay, Equity Residential

WEDNESDAY

AT&T, Boeing, Dow, General Electric, Mastercard, McDonald's, Novartis, Anthem, Corning, General Dynamics, Las Vegas Sands, Facebook, Microsoft, Mondelez, PayPal, Samsung Electronics, Tesla, United Rentals

THURSDAY

Altria, Biogen, Coca-Cola, Deutsche Bank, Eli Lilly, Royal Dutch Shell, Alexion Pharma, UPS, Verizon, Nintendo, H&M Hennes & Mauritz, Hershey, Blackstone, Northrop Grumman, Amazon, Amgen, Visa, Levi Strauss, Electronic Arts

FRIDAY

Caterpillar, Charter Comm, Chevron, Colgate-Palmolive, Exxon Mobil, Philips 66, Johnson Controls, Honeywell

Notable earnings reports:

• Ashland (NYSE:ASH), Rambus (NASDAQ:RMBS), Juniper Networks (NYSE:JNPR) and F5 Networks (NASDAQ:FFIV) on January 27; Apple (AAPL), eBay (NASDAQ:EBAY), AMD (NASDAQ:AMD), Lockheed Martin (NYSE:LMT), Pfizer (NYSE:PFE) and Starbucks (NASDAQ:SBUX) on Janury 28; 
• Facebook (FB), Microsoft (MSFT), McDonald's (NYSE:MCD), Boeing (BA), AT&T (NYSE:T), Tesla (TSLA), Cree (NASDAQ:CREE), Mastercard (NYSE:MA), Mondelez International (NASDAQ:MDLZ) and PayPal (NASDAQ:PYPL) on January 29; 
• Altria (MO), Coca-Cola (NYSE:KO), DuPont (NYSE:DD), Raytheon (NYSE:RTN), Verizon (NYSE:VZ), Visa (NYSE:V), Electronic Arts (NASDAQ:EA), Nintendo (OTCPK:NTDOY), Biogen (NASDAQ:BIIB), Amazon (AMZN) and UPS (UPS) on January 30; 
• Caterpillar (CAT), Honeywell (NYSE:HON), Chevron (NYSE:CVX) and Exxon Mobil (XOM) on January 31.

=Tech Data (TECD): to be acquired by Apollo Global Management for $145/sh, up from the previous price of $130

• Berkshire had bid $140

Tech Data enters into an amendment to its agreement to be acquired by funds managed by affiliates of Apollo Global Management (APO) at an increased consideration amount of $145/share

Co announced that it has entered into an amendment (the "Amendment") to its previously announced definitive agreement (the "Original Agreement") in which Tiger Midco, LLC ("Parent"), an affiliate of funds managed by affiliates of Apollo Global Management (NYSE: APO), will acquire all of the outstanding shares of Tech Data common stock. The Amendment provides that the consideration to be received by holders of Tech Data common stock has been increased to $145 per share in cash from $130 per share in cash, among certain other changes.

The Amendment was unanimously approved by the Board of Directors of Tech Data, and the revised purchase price represents an 11.5 percent increase in the price per share of Tech Data's common stock provided in the Original Agreement. The revised purchase price also represents a 30.2 percent premium to the unaffected closing share price of Tech Data's common stock ended Oct. 15, 2019, the last trading day prior to published market speculation regarding a potential transaction involving Tech Data. The revised transaction has an enterprise value of approximately $6.0 billion.

=Tech Data (TECD) to be acquired by Apollo (APO) for $130/share

Tech Data enters definitive agreement to be acquired by funds managed by affiliates of Apollo Global Management (APO) for $130/share

Co announced it has entered into a definitive agreement to be acquired by an affiliate of funds managed by affiliates of Apollo Global Management (APO), a global alternative investment manager.

Through the agreement, the affiliate of the Apollo Funds will acquire all of the outstanding shares of Tech Data common stock for $130 per share in a transaction with an enterprise value of approximately $5.4 bln.

Following the close of the transaction, Rich Hume will continue to lead Tech Data as chief executive officer, and the company will continue to be headquartered in Clearwater, Florida. Tech Data will become a privately held company, and Tech Data's common shares will no longer be publicly listed.

Tech Data (TECD) : Apollo (APO) buyout interest?

Private equity firm Apollo Global Management LLC is potentially interested in buying Tampa Bay's largest public company, according to a Tuesday report from Reuters.

 

 ** TECD charts **

 

New York-based Apollo has approached Clearwater-based Tech Data Corp. (NASDAQ: TECD) with an offer to acquire the company for close to $5 billion. Reuters sources people familiar with the matter.

A spokesman for Tech Data said the company does not provide comment on market rumors or speculation.

Apollo is offering to pay $130 per share in cash for Tech Data, according to the report. Tech Data's stock closed at $111.34 on Tuesday. Shares jumped more than 13 percent after hours as the news broke Tuesday evening, settling at $126.50 per share.

Check back for more as this is a developing story.

The tech manufacturing company reported $37.24 billion revenue in 2018. The company employs over 2,100 people locally and 14,000 companywide, according to Tampa Bay Business Journal research.

In August, Tech Data posted increased earnings with net income up 27 percent to $98.6 million in the fiscal second quarter. At the time, Tech Data’s CEO Rich Hume credited the growth to the company’s portfolio and ability to follow demand. Read more here about Tech Data's second quarter earnings.

Hilton Grand Vacations (HGV) to be acquired by Apollo Global (APO) ?

Apollo Global (APO) aiming to purchase HGV for as high as $36/share according to NY Post

Besides Apollo, Blackstone Group (BX - Get Report) also could also be a suitor for Hilton Grand Vacations, sources told the Post.

Apollo Global Management has told time-share operator Hilton Grand Vacations it wants to buy the $2.4 billion outfit, and the company is considering its next steps, The Post has learned.

Apollo, co-run by Leon Black, gave the Orlando time-share company three options: It could buy Hilton Grand at a premium to its share price, merge the company with smaller Apollo-owned rival Diamond Resorts and keep the combined business public, or tender for Hilton Grand shares at a premium to the current Hilton Grand share price, sources said.

Apollo has not indicated what it would pay, but sources said the private equity firm could bid as much as $36 a share — a 28% premium over the company’s closing price Monday of $28.21 a share.

Hilton on Aug. 1 reported disappointing earnings, and its shares are down more than 10% this month, giving suitors a chance to potentially buy it on a dip.

Apollo’s Black wants to combine Diamond Resorts, which it bought in September 2016, with Hilton Grand so it can cut costs and gain scale, sources said.

The CFO of Diamond, Jim Mikolaichik, was Hilton Grand’s CFO until last year.

Besides Apollo, the Blackstone Group could also be a suitor, sources said.

Hilton Worldwide Holdings, which Blackstone once controlled, spun off Hilton Grand in 2017. Blackstone then formed a joint venture with Hilton Grand to buy Elara, one of the world’s largest time-share resorts.

Blackstone President Jonathan Gray is still chair of Hilton Worldwide and licenses its name to Hilton Grand.

** charts before **

 

=Caesars Entertainment (CZR) to be acquired by Eldorado Resorts (ERI) for $8.7B or $13/sh

• Caesars’ shares closed on Friday at $9.99. The company, which emerged from bankruptcy in 2017, operates casinos with the Harrah’s and Horseshoe brands. It had 53 properties in 14 U.S. states and five countries outside the United States at the end of December.

   

(Bloomberg) -- Eldorado Resorts Inc. agreed to buy Caesars Entertainment Corp. for about $8.7 billion in cash and stock, according to a person familiar with the situation.

The deal values Caesars at about $13 a share, according to the person, who asked not to be identified because the information isn’t public. Including assumed Caesars debt, the transaction would be valued at about $18 billion. The combined entity will be split almost equally between shareholders of both companies, the person said, adding that the deal will be announced Monday.

The price represents a 30% premium to Caesars’s close on Friday. Eldorado had a market value of about $4 billion as of Friday.

Caesars had been pushed by activist billionaire Carl Icahn, its biggest shareholder according to data compiled by Bloomberg, to consider a sale. Earlier discussions had focused on a deal that would have valued Caesars at $11 a share, a person familiar with those talks had said.

Eldorado shares have risen 17% in the past year, compared with a 12% decline in Caesars’ stock. The S&P Supercomposite Casinos & Gaming Index, which tracks the performance of nine stocks including the two companies, slumped about 20%.

Caesars shares are trading at 24 times reported earnings, while Eldorado is valued at 33 times, according to data compiled by Bloomberg.

Officials from Eldorado and Caesars declined to comment on the report. Reuters earlier reported the acquisition plan.

The 550 foot-tall (167.6 m) High Roller observation wheel, the tallest in the world, is the centerpiece of the $550 million Linq project, a retail, dining and entertainment district by Caesars Entertainment Corp, in seen in Las Vegas, Nevada April 9, 2014. 

Eldorado wasn’t Caesars’ only suitor. Golden Nugget owner Tilman Fertitta proposed merging his restaurant and casino empire with Caesars last year, but was rejected by Caesars.

Caesars, whose properties include the flagship Caesars Palace and the Harrah’s chain, is still coping with the fallout of a 2008 leveraged buyout led by Apollo Global Management LLC and TPG that left it with a mountain of debt. The company completed a bankruptcy of its largest unit two years ago that brought in new board members and shareholders, including distressed-debt investors. Apollo and TPG have sold their shares.

Eldorado, which dates back to a single casino opened in Reno, Nevada, in 1973, has grown exponentially in recent years under the direction of Tom Reeg, who is now chief executive officer. The company in recent years acquired MTR Gaming Group Inc. and Isle of Capri Casinos, and last year added Tropicana Entertainment Inc., which was controlled by Icahn.

The business, which still counts the founding Carano family as its largest shareholder, now has 26 casinos in 12 states.

=Nielsen (NLSN): Blackstone (BX) drops out of the bidding process

The New York Post reported that Blackstone dropped out of the bidding process to acquire Nielsen.

Separately, private equity firm Apollo Global Management, which began sniffing around the company late last year, is also losing interest, a source close to the situation said.

Blackstone, which is controlled by billionaire Stephen Schwarzman, and Apollo were the strongest suitors for Nielsen, raising questions about whether it will be sold.

Part of the problem is that Nielsen’s $26.63 share stock price values the company at roughly $9.4 billion. But it’s debt of roughly $8 billion raises the cost to upward of $17 billion.

Blackstone — whose managing director, David Calhoun, ran Nielsen between 2006 and 2013 — didn’t like the numbers, which come at a time when Nielsen is struggling to raise prices for its research reports on consumer product trends.

Historically, the ratings firm was able to raise prices for those reports by roughly 5 percent a year, a research analyst said. But its consumer report clients, which include Procter & Gamble and Coca-Cola, are now balking at price increases given their own financial difficulties, this person said.

Nielsen has been refashioning its consumer research business so it will be cheaper to operate, which will lead to lower rates, much like its rival IRI, the analyst said.

Research firm SunTrust Robinson Humphrey recently lowered its projection for the company’s future cash flow by 14 percent from $700 million to $604 million.

-=Arconic (ARNC) walks away from Apollo's (APO) buyout offer

(Bloomberg) -- Arconic Inc. tumbled the most in eight months as the board rejected a sale of the company, scuttling a highly anticipated deal that would have ranked among the biggest leveraged buyouts since the global financial crisis.

Apollo Global Management had been in talks to buy the maker of aerospace and auto parts for $22.20 a share, valuing Arconic at about $10.7 billion, according to people familiar with the matter. The private-equity firm had secured financing for the offer, which included coverage of potential liabilities related to London’s deadly 2017 Grenfell Tower fire, the people said.

The collapse of the negotiations deepens uncertainty surrounding Arconic, which during the last two years has fought a proxy battle with activist investor Elliott Management Corp., replaced its CEO and drawn unwanted attention for its connection to the London tragedy. The focus now will shift to operational improvements and the previously announced sale of the building-systems unit, Arconic said in a statement Tuesday.

“We did not receive a proposal for a full-company transaction that we believe would be in the best interests of Arconic’s shareholders and other stakeholders,” Chairman John Plant said in the statement. Arconic declined to comment further. Apollo declined to comment.

Arconic plummeted 16 percent to $17.16 at 12:37 p.m. in New York after falling as much as 21 percent, the biggest intraday drop since April 30. The shares tumbled 38 percent last year, while a Standard & Poor’s index of industrial stocks dropped 15 percent.

Tumultuous History

The abandonment of the buyout extends Arconic’s brief but tumultuous life as an independent company since splitting with aluminum producer Alcoa a little over two years ago. Chief Executive Officer Chip Blankenship, who took the reins early last year, has been conducting a strategic and portfolio review to address what he has called disappointing execution.

The fallout from the London fire, which killed more than 70 people, had been a sticking point in the negotiations with Apollo, Bloomberg News previously reported. The firm, which had emerged as the front-runner after topping an offer from rival private-equity investors, was working to protect itself from ongoing liabilities.

While reports of private-equity interest had buoyed Arconic, the shares still suffered last year as the company weathered poor performance and rising aluminum prices.

Blankenship, a former General Electric Co. executive, put Arconic’s Building and Construction Systems unit up for sale in July as part of the portfolio review. He also agreed to move the company’s headquarters out of New York to help cut costs.

While the sale’s cancellation may “result in a longer time horizon to recognize increased shareholder value,” Arconic still has plenty of options, according to a client note from Jefferies analysts. The building-systems sale, cost-reduction efforts and improving end markets are likely to buoy the company, they said.

GameStop (GME) is looking for another CEO again and reviewing strategic alternatives

Videogame retailer GameStop Corp. is working to restructure its business as it searches for its fifth chief executive in a little over a year.

Private equity firms interested in buying GameStop include Sycamore Partners and Apollo Global Management, people familiar with the matter told the Wall St. Journal.

The video game and electronics company has struggled as competition from Amazon and digital gaming have eaten into its sales. Revenues have dropped for four of the last five years, and investors aren't happy. Its stock, which has a $1.5 billion market value, declined 30 percent last year.

The company has been trying to restructure its business and branch out beyond selling new and used video games. But those ventures haven't always worked out. In November, it sold its Spring Mobile business for $700 million to Prime Communications to generate cash.

GameStop and Sycamore Partners declined to comment. Apollo wasn't immediately available to respond to a request for comment.

Arconic (ARNC) to be acquired by Apollo Global Management (APO)?

(Bloomberg) -- Apollo Global Management LLC is in talks to buy Arconic Inc. for about $22 a share in a deal that could be reached by mid-January, according to people familiar with the matter.

The private equity firm and aerospace manufacturer are negotiating a transaction that would protect Apollo from Arconic’s possible liability tied to a deadly apartment fire in London in 2017, said the people, who asked to not be identified because the matter isn’t public. The final price is still being negotiated and talks could fall apart, they said.

Arconic discontinued sales of the aluminum panels used on the Grenfell Tower after the blaze amid reports they were a fire hazard. The company would spin off its cladding business -- the entity that made the panels -- as part of a deal with Apollo, the people said.

Elliott Management Corp. would purchase a majority interest in the cladding business, which would be recapitalized and insured as part of the spinoff, the people said. Separately, the New York-based hedge fund would roll over its 10.7 percent stake in Arconic as part of the take-private transaction with Apollo, they said.

Obstacles to reaching an agreement could include securing financing and further stock market volatility, which has dampened prices, one of the people said.

Representatives for Elliott, Arconic and Apollo declined to comment.

Apollo emerged as the leading bidder for Arconic after trumping an offer from a rival group of private equity investors, people familiar with the matter said in December. The privatization would cap a brief but tumultuous period of independence for Kingston, New York-based Arconic, which makes aircraft and automotive parts.

Since splitting from Alcoa Corp. in 2016, Arconic fought a proxy battle with Elliott and replaced its chief executive officer.

Arconic rose about 10 percent -- its largest intraday gain since July -- to $18.50 at 3:49 p.m. in New York trading, giving the company a market value of about $9 billion. Its shares had fallen about 37 percent in the past year before Wednesday’s gains.

Arconic, under Chief Executive Officer Chip Blankenship, put its building and construction systems unit up for sale in July. It also agreed to move its headquarters out of New York City to cut costs.

Jack In The Box (JACK) to sell Qdoba Restaurant Corporation to Apollo Global (APO)

• Qdoba, with 700 locations in 47 states, is the second largest fast-casual Mexican food chain after Chipotle.

 

Jack In The Box to sell Qdoba Restaurant Corporation to Apollo Global (APO) for $305 mln in cash 
The transaction is expected to close by April 2018. The Company expects to use the net cash proceeds after tax and transaction costs to retire outstanding debt under its term loan, as required by the terms of its credit facility.

** charts before **

 

=Apollo Global Management (APO) reported earnings on Wed 1 Nov 2017 (b/o)

Apollo Global Management beats by $0.48, beats on revs 

• Reports Q3 (Sep) earnings of $1.07 per share, excluding non-recurring items, $0.48 better than the Capital IQ Consensus of $0.59; revenues rose 31.1% year/year to $645.2 mln vs the $467.72 mln Capital IQ Consensus.
• "Apollo delivered excellent results for the third quarter driven by strong investment performance across all our businesses, led by the private equity funds we manage which appreciated by 7% in the quarter and 25% over the last twelve months," said Leon Black, Chairman and Chief Executive Officer. "By leveraging the power of Apollo's integrated global platform, we have generated capital inflows of $56 billion in the past year, bringing total assets under management to $242 billion, including nearly $100 billion of permanent capital."
• Apollo has declared a cash distribution of $0.39 per Class A share for the third quarter ended September 30, 2017. This distribution will be paid on November 30, 2017 to holders of record at the close of business on November 21, 2017. 

=CareerBuilder acquired by Apollo Global Management (APO) (6/17)

• CareerBuilder cut 120 employees, or 4 percent of its workforce, including 30 workers in its head office in Chicago.

The layoffs this week follow a purchase of the digital job-listing company in June by private-equity firm Apollo Global Management and the Ontario Teachers' Pension Plan Board. Private-equity firms often reduce staff to reduce costs and improve profit margins.

CareerBuilder got its start in the mid-1990s as an online classified advertising site formed by a group of newspapers, including the Chicago Tribune, that wanted to have a digital presence and preserve advertising revenue tied to job listings. It was one of the first websites tailored to help job seekers and employers find each other online, and to provide advertising alongside that function.

Before the cuts, the company had about 3,300 employees worldwide, including 1,230 in Chicago. It reported annual revenue of $714 million last year.

The online human resources arena has expanded significantly over the past 20 years, creating significant competition for CareerBuilder, including from Indeed.com, Monster.com and HotJobs.com. LinkedIn and, more recently, Glassdoor also have evolved into important job-posting sites for employers and job seekers.

=Apollo Global Management (APO) reported earnings on Fri 28 Apr 2017 (b/o)

Apollo Global Management beats by $0.18, beats on revs :

• Reports Q1 (Mar) earnings of $0.82 per share, $0.18 better than the Capital IQ Consensus of $0.64; revenues rose 431.0% year/year to $641.55 mln vs the $570.83 mln Capital IQ Consensus.
  • Total AUM $197.5 bln
  • Fee-Generating AUM $154.2 bln
  • Dry Powder $24.2 bln
  • Inflows $5.2 bln of capital inflows
  • Deployment: $3.4 bln invested 
  • Realization: $1.7 bln of capital returned to investors
  • Performance: PE Funds Appreciation 8.0% (22.0% LTM)
  • Credit Gross Return 1.9% (LTM 12.1%)

=Rackspace (RAX) to be acquired by Apollo Global (APO) for $32.00/share

• Rackspace (RAX) agrees to be acquired by Apollo Global (APO) for $32.00/share in cash, or approximately $4.3 bln.  (8/26/16)

   

The co announced that it has entered into a definitive agreement with affiliates of certain funds managed by affiliates of Apollo Global Management, LLC (APO) to be acquired for $32.00 per share in cash. In connection with the transaction, funds managed by Searchlight Capital Partners, L.P. will make a strategic equity investment in the acquired company. The transaction has a total value of $4.3 billion, which includes the assumption of $43 million of net cash. Upon completion of the transaction, Rackspace will become a privately held company.

• The transaction is expected to close in the fourth quarter of this year. The transaction is subject to the conclusion of the applicable antitrust waiting periods in the United States, the European Union and Israel, stockholder approval and other customary closing conditions.

Rackspace (RAX) to be taken private?

San Antonio based cloud computing giant Rackspace (RAX) saw its share price soar more than 13% Friday morning following reports that the company is discussing a possible sale to private equity firm Apollo Global Management. According to Reuters, if the deal goes through it could be a transaction valued at more than $3.5 billion. The company’s primary business involves leasing server space to organizations. Last year it realized gross revenues of $1.3 billion and a net profit of $122 million. Rackspace is expected to announce its second-quarter earnings on Monday.

** Thu Shares of data center hosting outfit Rackspace Hosting (RAX) were halted just before the closing bell, as headlines came across the Dow Jones wire that the company is in “advanced talks” with private equity to be taken private, citing multiple unnamed sources.
The shares had risen $2.93, or almost 13%, to $26.09, before the halt.

RAX one week later

An internationally diversified investment group, Apollo Global has carried out a series of high-profiled acquisitions this year that have resulted in the privatization of several once-public companies. Earlier this year, the company bought security firm ADT Corp for $6.9 billion, making it the largest leveraged buyout for 2016. Most recently, Apollo acquired Diamond Resorts International (DRII) in June for $2.2 billion.