=CA explores merger with BMC Software

• BMC has been owned by Bain Capital and Golden Gate Capital since 2013, when the buyout firms took the company private in a deal valued at about $6.9 billion.
• CA, led by Chief Executive Officer Michael Gregoire, develops applications for cloud and mobile computing, with most of its revenue coming from maintenance contracts and subscriptions. Founded in 1976 as Computer Associates International, the company went public in 1981.

BMC Software Inc. and CA Inc. are considering a potential deal that would see the software companies combine as part of a transaction to take CA private.

If a deal goes ahead, it would be the biggest leveraged buyout of a technology company since a group led by Michael Dell and Silver Lake Management agreed to buy Dell Inc. in 2013 in a transaction valued at almost $25 billion. CA shares closed at $31.58 on Tuesday, valuing the New York-based company at about $13.2 billion.

Leveraged buyouts -- in which financial sponsors raise a large amount of debt to finance an acquisition -- have become rarer since the 2008 financial crisis led to tighter rules on lending at banks. Private equity firms led 19 purchases worth more than $10 billion from 2005 to 2007

Since the start of 2008, just one such deal other than Dell has been led by a private equity firm: Apollo Global Management LLC’s $12.3 billion acquisition of ADT Corp. in 2016.

Bob Evans (BOBE) to sell Bob Evans Restaurants, will acquire Pineland Farms Potato Company

• Bob Evans Farms, Inc. is leaving the restaurant business and transitioning fully into pre-packaged and frozen foods.
• Golden Gate Capital to acquire Bob Evans Restaurants for $565 million plus assumption of certain net working capital liabilities. Net proceeds of $475 to $485 million expected
• Golden Gate Capital owns California Pizza Kitchen and Red Lobster.
• The company announced two transformational transactions resulting from the board of directors' strategic review of the Company's alternatives for creating shareholder value. The sale of Bob Evans Restaurants and the acquisition of Pineland Farms Potato Company marks the beginning of a new era at Bob Evans Farms in which the Company will focus exclusively on realizing the full potential of its BEF Foods business. BEF Foods is the national market share leader in refrigerated dinner side dishes, and is also the market share leader in sausage products in its core Midwest markets. 

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Bob Evans Farms, Inc. announces definitive agreements for the sale of Bob Evans Restaurants and the purchase of Pineland Farms Potato Company, enabling the Company to focus on driving growth of BEF Foods

Net proceeds of Bob Evans Restaurants transaction expected to be used for repayment of outstanding indebtedness and payment of a special dividend of approximately $150 million ($7.50 per share) within approximately 60 days following closing

BEF Foods acquiring Pineland Farms Potato Company for $115 million using new borrowings. Purchase price may be increased if certain financial metrics are achieved during a 24-month period after closing

Both transactions expected to close by the end of fiscal 2017 (April 28, 2017)