Mergers and acquisitions can be very beneficial to a state’s economy. As stated in an article in Economy Watch:
“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.”