Merger/restructuring news
CVS Health Corporation announced on December 4, 2017, that they had reached a merger agreement with Aetna Inc. under which CVS Health will acquire Aetna in a $77 billion transaction. After the close of the transaction, Aetna will continue to operate as a stand-alone business unit within CVS Health. The subsidiary will be led by members of its current management team, and additional personnel will continue to hold significant positions in the combined company. In addition, three of Aetna’s directors, including current Chairman and Chief Executive Officer Mark T. Bertolini will join the CVS Health Board of Directors. The transaction is expected to close in the second half of 2018, subject to approval by the shareholders of both companies, as well as regulatory approvals.
Regal Entertainment Group has agreed to be acquired by Cineworld Group PLC in a deal valued at $5.9 billion. The merger is expected to be completed in the first quarter of 2018, pending regulatory and shareholder approval.
Optum Inc. entered into an agreement on December 5, 2017, to acquire DaVita Inc.’s subsidiary DaVita Medical Group and combine the said company with Optum’s OptumCare division. Following the transaction, Joe Mello, current Chief Operating Officer of DaVita Medical group, will continue in a leadership role in the combined company, as well as other members of DaVita Medical Group’s leadership team. The transaction is expected to close at an unspecified date in the calendar year 2018, subject to regulatory approval and other closing conditions.
CF Corporation completed its $1.8 billion acquisition of Fidelity & Guaranty Life, formerly a majority-owned subsidiary of HRG Group, Inc., on November 30, 2017. CF Corp. changed its name to FGL Holdings after it closed the transaction.
Prysmian Group and General Cable Corporation announced that they have agreed to a merger, with Prysmian Group acquiring General Cable. The transaction is expected to be completed by the third quarter of 2018.
CEO changes
DISH Network Corporation named Erik Carlson, a 22-year veteran of DISH, as President and Chief Executive Officer. He succeeds Charlie Ergen, who will continue as Chairman. Carlson served as President and Chief Operating Officer prior to his promotion.
Piper Jaffray Companies announced the appointment of Chad Abraham as Chief Executive Officer and Deb Schoneman as President, effective January 1, 2018. Abraham, currently serving as Global Co-Head of Investment Banking and Capital Markets, will succeed current CEO Andrew Duff, who will continue as Chairman. Stuart C. Harvey, Jr. is resigning as President and Chief Operating Officer at the end of this month. In a press release, the company said that “Piper Jaffray and Harvey have mutually determined that they have different approaches to strategy and leadership.”
Patrick E. Connolly was named President and Chief Executive Officer of Follett Corporation, effective January 2, 2018. He will succeed Ray A. Griffith, who is retiring in March 2018. Connolly has spent much of his career at Sodexo, where he currently serves as CEO, Schools and Universities Worldwide.
Markus Jooste resigned as Chief Executive Officer of Steinhoff International Holdings N.V. on December 6, 2017. His departure is connected with the company’s disclosure that it had discovered “accounting irregularities requiring further investigation.”
CITGO Petroleum Corporation, a subsidiary of Petróleos de Venezuela S.A., appointed Asdrúbal Chávez as Acting President and Chief Executive Officer.
TravelCenters of America LLC announced that Thomas M. O’Brien will resign as President and Chief Executive Officer, effective December 31, 2017. Andrew J. Rebholz has been selected to replace him in the CEO role.
Toshiba America Energy Systems Corporation named Kenji Kano as President and Chief Executive Officer.
Compagnie Generale de Geophysique-Veritas announced that Jean-Georges Malcor will resign as Chief Executive Officer after a company restructure, by the end of the first quarter in 2018.
More Corporate Changes
EMD Serono appointed John Walsh, M.D. as its Vice President of Neurology and Immunology and U.S. Medical Affairs on December 7, 2017. The company notes that Dr. Walsh will be tasked with directing and implementing plans for Serono’s Rebif® product, as well as other products in development.
Biogen Inc. announced on December 4, 2017, that they had appointed Mark Hernon, formerly with Takeda Pharmaceuticals, to the role of Senior Vice President and Chief Information Officer.
Jazz Pharmaceuticals plc announced on December 4, 2017, that Daniel N. Swisher had been appointed as President and Chief Operating Officer. Jazz’s current Executive Vice President and Chief Operating Officer, Russel J. Cox, will be resigning from the company. These changes will take effect January 3, 2018.
