Tag Archives: Hedge Funds

VSE Pays $184M for 4 Killick Aerospace Units

The buyer is picking up Prime Turbines, CT Aerospace, Kansas Aviation and Air Parts & Supply Co. All of the companies specializes in maintaining, repairing and overhauling services and part supply for corporate and regional jet aircraft engines and engine accessories. The purchase agreement includes a payment of up to $40 million depending on the target’s Ebitda achievements in the next two years, and potential additional $5 million payments.

Prime Turbines, headquartered in Carrollton, Texas, specializes in repairing Pratt & Whitney Canada and GE Aviation engines. CT Aerospace, also based in Carrollton, supplies engine parts and services to aircraft repair companies. Independence, Kansas-based Kansas Aviation specializes in repairing oil, air and fuel-related engine accessories for gas turbine engines. Air Parts & Supply, headquartered in Miami, supplies parts, including aircraft ignition parts, fuel control parts, starter generators for engines.

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8-K Filing Shows PCM Enters Agreement With Sarcom Properties To Buy Property For $6.569M

On December 23, 2014, PCM, Inc. (the “Buyer”) entered into an agreement with Sarcom Properties, Inc. (the “Seller”), an unaffiliated third party, to buy certain real property from the Seller for a total cash sales price of $6,569,500 (the “Agreement”). The real property is located at 8337 Green Meadows Drive N., Lewis Center, Ohio and includes approximately 12.4 acres of land together with a building for office and warehouse space of approximately 144,000 square feet (the “Building”). One of our other subsidiaries is currently the tenant of the Building and it is currently being used as our second headquarters, sales office and distribution center. We expect to finance around 70% of the purchase price with a long-term note.

The Buyer is entitled to terminate the Agreement for any reason while it conducts due diligence related to the property during a 30 day period from December 23, 2014 (the “Due Diligence Period”). In addition, the Buyer may extend the Due Diligence Period for further environmental due diligence for an additional 30 days if it determines in its sole discretion that further environmental due diligence is required. However, the Buyer and Seller have agreed to use best efforts to close the transaction no later than January 31, 2015. The Agreement also contains other customary closing conditions to the purchase and sale of the real property.

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U.K. M&A Deals: What a U.S. Buyer Should Expect

This article explores the significant differences between market deal terms in the U.S. and U.K., with an additional focus on what buyers should expect when a business is being sold by a U.K. private equity fund.

Typically, U.S. private stock deals are executed on a ‘cash-free, debt-free’ basis, incorporating upward and downward adjustments to the agreed-to purchase price based on post-closing metrics.

Conversely, the ‘locked box’ method is gaining prevalence in the U.K. This approach involves an equity price being established using a historic set of accounts which the buyer has no ability to adjust after closing. If changes to these accounts occur, the buyer’s only right of claim is under contract.

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Healthcare at heart of robust year in M&A

Market wisdom has it that most takeovers destroy value in the long-run. But the world’s largest companies seem to have had little time for history lessons in 2014. In all, there were 96 deals worth more than $5bn completed over the past 12 months. Together, their value was around $1.2tn, or 37 per cent of the overall volume of corporate transactions.

Dr. Keith A. Marcus draws Allergan Inc. Botox into a syringe before administering it to a patient at the offices of Marcus Facial Plastic Surgery in Redondo Beach, California, U.S., on Tuesday, April 22, 2014. Valeant Pharmaceuticals International Inc. offered to buy Allergan Inc., maker of the Botox wrinkle treatment, in a cash-and-stock deal valued at $45.7 billion in the latest step of the Canadian company's plan to become one of the world's largest drugmakers. Photographer: Patrick T. Fallon/Bloomberg *** Local Caption *** Keith A. Marcus

In what soon became the best year for dealmaking since the financial crisis — measured on a total volume of $3.34tn — the US led the way, spurred by favourable economic conditions and central bank monetary policy. But Europe and Asia finished the year strongly as well.

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‘Greedy Hedge Funds’ Won’t Stop MetroPCS Merger: T-Mobile CEO

True to T-Mobile USA’s new “uncarrier” branding, John Legere is not your average telecom chief executive officer. For one, he tends to do away with niceties.

At the Consumer Electronics Show in January, Legere described AT&T’s wireless network as “crap” “I get myself in trouble sometimes,” Legere, wearing his favorite magenta T-Mobile T-shirt under a dark gray blazer, said in an interview at the convention.

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Hedge Funds See Repeat of Yen Slide That Paid Soros, Currencies

According to Bloomberg,

Hedge funds are betting on another run of yen weakness, a trade that made money earlier this year for billionaire George Soros, putting them in opposition to economists who see Japan’s currency little changed into 2014.

Futures traders pushed net shorts, or wagers the yen will fall versus the dollar, to the highest since July 2007, according to the Commodity Futures Trading Commission. That contrasts with the median estimate of more than 50 analysts surveyed by Bloomberg, which puts the currency at 102 per dollar at the end of the first quarter of 2014, from 101.47 today.

Japan has resorted to an unprecedented $70 billion of monthly bond purchases since April to depreciate its currency, boost growth and combat deflation. The yen has plunged 15 percent this year, on pace for the biggest drop since 1979.

“Everybody likes dollar-yen higher,” Brad Bechtel, the managing director at Faros Trading LLC in Stamford, Connecticut, said in a Nov. 22 interview. “And everyone has it on.”

The yen fell to as low as 101.92 per dollar yesterday, the weakest level since May, when it slid to a 4 1/2-year low of 103.74. While it gained for the first time in four days today, its decline this year makes it the worst performer after South Africa’s rand among 16 major currencies tracked by Bloomberg.

Soros Profits

Japanese Yen and U.S. Dollar (Bloomberg)

Japanese Yen and U.S. Dollar (Bloomberg)

Soros, 83, made almost $1 billion from November 2012 to February 2013 on bets the yen would tumble, according to a person close to the billionaire’s family office. Michael Vachon, a spokesman for Soros Fund Management LLC, declined to comment.

Soros’s former chief strategist, Stan Druckenmiller, who made $10 billion with Soros in 1992 from a wager that the Bank of England would be forced to devalue the pound, has also been selling the yen. Druckenmiller, the founder of Duquesne Capital Management LLC, said in a Bloomberg interview in September that his firm is “short some yen,” while being “long some Japanese” stocks.

Fortress Macro Fund, which is run by Michael Novogratz and Adam Levinson, made money trading the yen last year when the currency fell 13 percent. Fortress Macro Funds oversee $3.8 billion. Spokesman Gordon Runte couldn’t be reached for comment.

Signs that the Federal Reserve may reduce its $85 billion a month of bond purchases, which pump money into the economy and debase the dollar, are also driving the yen’s plunge versus the U.S. currency. Minutes of the U.S. central bank’s Oct. 29-30 policy meeting showed that Fed officials expected to reduce their stimulus program “in coming months” as the economy improves.

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Hedge funds bet on price rebound after a dismal Q2

Hedge funds bet on price rebound after a dismal Q2

NEW YORK: Hedge funds are betting on a big commodity price rebound after a dismal second quarter, with trade data showing bets for higher prices at a near six-month peak after the US Federal Reserve softened its stance on tapering its monetary stimulus.

Wagers on US crude oil are already at record highs, the weekly data from the US Commodity Futures Trading Commission(CFTC) showed. Bets are also growing for a rebound in gold after its price tumbled 23% in the second quarter. Fed Chairman Ben Bernanke, addressing Congress over two days this week, said the central bank’s stimulus-tapering plans were not set in stone and depended on the strength of the economy. He had previously signalled that the Fed’s $85 billion in monthly bond purchases would be scaled back later this year and ended altogether in 2014.

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