“Mergers and acquisitions generally succeed in generating cost efficiency through the implementation of economies of scale. An increase in cost efficiency is effected through the procedure of mergers and acquisitions. This is because mergers and acquisitions lead to economies of scale. This in turn promotes cost efficiency.”
Here we take a look at a few recent ones that were undertaken in New York.
Holtec International is acquiring the Indian Point Energy Center
from Entergy Corp. Through this the firm
will decommission three of the plant’s nuclear reactors. This will result in a doubling of its existing
reactors portfolio that is set to be diminished entirely. The transaction will
be complete in 2021.
Last week, Sequential Brands Group, Inc. is selling rights to the
Emeril Lagasse and Martha Stewart brands. The new owner will be Marquee Brands LLC.
The price for the sale (including accessories) is estimated at $175
million plus an additional $40 million in earnout opportunity. According
to Sequential Brands Group CEO, Karen Murray:
“This transaction allows Sequential to make meaningful progress in de-levering our balance sheet, which is a top priority. This process was conducted after careful consideration by our Board of Directors and advisors. While we have made significant progress with the Martha Stewart and Emeril Lagasse brands, we determined the best direction for the Company going forward is to focus on our core active and fashion brands and drive even more profitable growth across our business. I have confidence that the Martha Stewart and Emeril Lagasse brands will continue to flourish under new ownership as they build on what we have accomplished to date. We thank Martha for her support of Sequential and this transaction.”
This month and next month there are a
variety of conferences and meet-ups in New York. Here we take a look at three of them:
On March 11th, starting at
8am and continuing until March 12th at 4.30pm, New York’s Grand
Hyatt will be home to the Local Online Advertising
Conference. Hosted by Borrell
Associates, a whole slew of industry leaders will come together at the largest gathering of local
digital media executives. Now in its 10th year, attendees will be
privy to top speakers tackle paramount trends within the industry. Note: the conference is all about local, digital,
and advertising. Between 300 and 500 executives attend each year.
A week later
the Marriott, Brooklyn Bridge will open its doors to the Responsible
Business Summit. With approximately 500 attendees, the two-day event from 18th-19th
March is now in its 7th year.
Speakers include: Assistant Secretary General UN Environment, Satya
Tripathi, Mayor of Philadelphia James F. Kennedy, CEO of LanzaTech Jennifer Holmgren,
President of the SASB Foundation Matthew Welch and more. Supplemental to the summit,
participants can take advantage of the Sunrise EC running club led by Ethical
Corporation MD Liam Dowd, a mingling of SDG-focused networking, whereby
attendees can share ideas, and the Start-up Showcase where one can benefit from
innovators to aid in the acceleration of goals and ambitions.
Next month The Spring Investor Summit arrives in New
York between April 1 and 2. This event facilitates
the networking of small and microcap firms with high-level, institutional and
retail investors. Set in the stunning Essex House, participants can enjoy the
conference while looking out at New York’s Central Park! Hailed as “the fastest
growing investor conference in the country,” its goal is “to highlight the most
compelling publicly traded companies under $5 billion in market cap across all
sectors.” 200 companies will present;
1,200 institutional and retail investors will be present and 2,000 one-on-one
meetings will be held.
New York is a hub for business
transactions. Here we take a look at
three recent ones.
The Parker New
York has been acquired by GFI Capital
Resources Group and Elliot Management Corporation affiliates. $100m+
has been committed by these companies for renovation purposes. With this money residential condo units will
be incorporated into the premises.
Thomas Juul-Hansen is leading the design team.
The Little Rock Sedgwick Building
has been purchased for $4.5m by New York’s Woodmont Hardin. Located at 400 Hard Road, it has nearly
50,000 square feet office space capacity.
It is being sold by Responsive Education Solutions.
A new position if 764,359 shares of Avanos
Medical Inc has been purchased by Bank of New York Mellon Corp in the third
quarter. This has been valued at
approximately $52,359,000. Other shares were purchased by Bollard Group
LLC (valued at $100,000); Whittier Trust Co (valued at $110,000) and Public
Employees Retirement System of Ohio (valued at $136,000).
It’s more than a name obviously but when a successful company changes it, one has to wonder why. New York & Company – the successful corporate women’s apparel firm – will soon become RTW Retailwinds next Monday. As part of its rebranding move, this will be the name under which it will be traded on the NYSE on November 20; with the RTW ticker symbol.
It’s not just the name that is changing though. For rebranding purposes there are other transformations being undertaken such as an expansion of Fashion to Figure (its plus size brand) as well as a brand new lingerie lifestyle brand and a Kate Hudson casual lifestyle collection. Greg Scott, CEO of the firm explained:
“RTW reflects our vision to maximize the power of our platform to create destination celebrity and lifestyle brand assortments across categories and channels. We move forward strongly positioned to continue our expansion of NY&Co, expanding celebrity brands with the upcoming launch of Kate Hudson and entering intimate apparel – a core competency of our team.”
Over in Buffalo, We Care Transportation (Buffalo’s most expansive non-emergency medical transportation provider) is ditching its name to become Cedar Bus Co. In its explanatory press release it was written that:
“The change reflects the organization’s evolution and ongoing commitment to clean energy and the communities they serve.”
In time for its 5th anniversary, Figliulo & Partners will simply become Fig, in some measures “to tie together the agency’s many developments since it opened in 2013.”