Notable Mergers and Acquisitions of the Day 07/03: (AVP) (ITW) (YHOO)
, Avon Products, Inc. (NYSE: AVP) entered into an Asset Purchase Agreement to sell its Silpada jewelry business (“Silpada”) to Rhinestone Holdings, Inc. ("Rhinestone") for $85 million, plus an earn-out up to $15 million if Silpada achieves specific earnings targets over two years. Rhinestone is a newly formed entity owned by the founders of Silpada. Earlier this year, the Company disclosed that it was reviewing strategic alternatives for Silpada. As of June 30, 2013, the Company will account for and report Silpada as discontinued operations. The Company expects to record a charge of approximately $80 million pre-tax (approximately $50 million net of tax), reflecting the estimated loss on sale, in the second quarter of 2013. The transaction is expected to close on July 3, 2013. The Company expects that the proceeds from the sale will be used for general corporate purposes, including the repayment of outstanding debt.
* Illinois Tool Works Inc. (NYSE: ITW) today announced that it has acquired Gold Pattern Holdings from private equity firm Actis. Gold Pattern Holdings owns 100% of Vesta Global Ltd., which holds a 100% equity stake in Vesta (Guangzhou) Catering Co., Ltd. ("Vesta"). Vesta is a leading Western kitchen equipment manufacturer in China. Terms of the transaction were not disclosed.
Vesta's product portfolio is composed of Western cooking/warming equipment including fryers, griddles, convection ovens, modular cooking equipment, and combi ovens, sold under the brand name Justa. Key customers include four and five star hotels and chain restaurants. The company is headquartered in Guangzhou, China and operates two manufacturing facilities there, employing approximately 900 people in total.
"We are pleased to add Vesta to our global food equipment business," said ITW Executive Vice President Chris O'Herlihy. "This acquisition gives us entry to the fast-growing Chinese Western cooking industry with a differentiated product offering, attractive end market presence, and a well-established national distribution sales and service network."
* After markets closed Tuesday, Yahoo (Nasdaq: YHOO) announced the acquisition of Qwiki. The terms were not disclosed. For more color, click here.
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