Merger/restructuring news
Kindred Healthcare announced on December 19, 2017, that it had entered into a definitive agreement to be acquired by a consortium of three companies: TPG Capital; Welsh, Carson, Anderson & Stowe, and Humana Inc. Under terms of the agreement, Kindred’s home health, hospice, and community care businesses will be separated into a separate company, jointly owned 40 percent by Humana Inc. and 60 percent by TPG and Welsh, Carson, Anderson & Stowe. Humana will have a right to buy the remaining ownership interest in Kindred at Home over time. Kindred’s LTAC hospitals, IRFs and contract rehabilitation services businesses will be owned by TPG and WCAS under the title of “Kindred Healthcare.” Upon completion, Benjamin A. Breier, President and Chief Executive Officer at Kindred will serve as Chief Executive Officer of the specialty hospital company, Kindred Healthcare. David Causby, who currently acts Executive Vice President and President of Kindred at Home, will serve as Chief Executive Officer of Kindred at Home. The transaction is expected to close in the summer of 2018.
Nabors Industries Ltd. completed its acquisition of Tesco Corporation on December 15, 2017.
Emerson Electric Co. agreed to acquire Cooper-Atkins Corporation. The acquisition is expected to be completed by February 28, 2018.
McDermott International, Inc. announced that it will merge with Chicago Bridge and Iron Company N.V. for $6 Billion. It is expected to be completed in the second quarter of 2018.
ConvergeOne completed its acquisition of Alexander Open Systems (AOS) this week. Effective immediately, the AOS is now AOS, a ConvergeOne Company.
Penn National Gaming, Inc. and Pinnacle Entertainment, Inc. entered into an agreement under which Penn National will acquire Pinnacle. The transaction, which is valued at approximately $2.8 billion, is expected to close in the second half of 2018, subject to approval of the shareholders of Penn National and Pinnacle, the approval of applicable gaming authorities, the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Act and other customary closing conditions.
On December 15, 2017, Alimentation Couche-Tard Inc. announced that it has obtained clearance from the U.S. Federal Trade Commission to acquire all of the issued and outstanding equity interest of Holiday Stationstores, Inc. The closing of the acquisition is expected to occur on December 22, 2017.
Campbell Soup Company announced on December 18, 2017, that they had reached an agreement to acquire Snyder’s-Lance, Inc. Upon closing, Snyder’s-Lance will become a part of Campbell’s Global Biscuits and Snack division. The transaction is expected to close in the second calendar quarter of 2018, subject to Snyder-Lance shareholder approvals, as well as customary regulatory approvals and other closing conditions.
Express Scripts Holding Company completed its acquisition of eviCore on December 15, 2017, a business decision which adds additional strength to the company in the sector of medical benefits management. John Arlotta will remain the Chief Executive Officer of eviCore, and will also be joining Express Script’s senior leadership team.
CEO changes
On December 16, 2017, M&T Bank Corporation announced the passing of their longtime Chairman and Chief Executive Officer, Robert G. Wilmers. A few days later, on December 20, 2017, the company named René F. Jones as Wilmers’ successor in the Chairman and CEO role.
James M. “Jim” Foote has been named Acting Chief Executive Officer at CSX Corporation following the passing of E. Hunter Harrison on December 16, 2017.
ASSA ABLOY AB appointed Nico Delvaux as President and Chief Executive Officer, effective June 18, 2018, at the latest. He will succeed Johan Molin, who will be stepping down from the position after twelve years. Delvaux currently serves as the President and Chief Executive Officer of Metso Corporation. The Board of Directors of Metso has initiated a search to find Delvaux’s replacement.”
Banco Latinoamericano de Comercio Exterior, S.A (Bladex) announced this week that Rubens V. Amaral Jr. will step down as Chief Executive Officer on April 30, 2018. He will be succeeded by N. Gabriel Tolchinsky, currently the bank´s Chief Operating Officer and Alternate to the CEO.
Zimmer Biomet Holdings, Inc. appointed Bryan C. Hanson, formerly part of Medtronic’s Executive Committee, as the new President and Chief Executive Officer of the company on December 19, 2017. Daniel P. Florin, who has held the position of Interim CEO since July 11, 2017, will continue in his role as Senior Vice President and Chief Financial Officer.
More Corporate Changes
Teva Pharmaceuticals Industries Ltd. announced on December 14, 2017, that the company had begun a comprehensive restructuring plan to improve the financial performance of the company. Teva plans to reduce base cost by $3 billion by the end of the calendar year 2019, more than half expected to be achieved by the end of 2018. The company also plans to reduce its workforce by 25% and to close many manufacturing plants, R&D facilities, headquarters and other office locations. Reports and statements from Teva spokespersons indicate that the Washington, DC office will be shuttering because of these changes. These changes follow a serious reorganization of Teva’s management structure in October 2017 and reports of subpar financial performance following its loss in a legal dispute with the drug-maker Mylan N.V.
Allergan plc announced on December 18, 2017, that it had promoted Wayne Swanton to the role of Executive Vice President of Global Operations following the announcement that Rob Stewart, current Executive Vice President and Chief Operating Officer of the company, intends to leave to serve as the new Chief Executive Officer of Amneal Pharmaceuticals in 2018. Amneal Pharmaceuticals Inc. will be formed in 2018 by the merger of Amneal Pharmaceuticals LLC and Impax Laboratories, Inc.
Kaiser Permanente announced on December 18, 2017, that it had selected Kathryn Beiser as its new Senior Vice President and Chief Communications Officer. Beiser, who previously served as the Global Chair for Corporate Practice at Edelman Public Relations Worldwide, will be responsible for public relations, media relations, crisis management, and other executive communications. She will begin this role on January 8, 2018.
