Barnes Group (NYSE:B): Closing price $28.10
MSC Industrial (NYSE:MSM) will acquire the Barnes Group at a price of $550 million, with the asset purchase structure resulting in significant future tax benefits with a net present value estimated to be more than $100 million. Run-rate cost synergies should reach between $15 million and $20 million by fisacl year 2015. The transaction should close during the firm’s third quarter and will be financed using available cash and borrowings under an anticipated new credit facility and term loan structure. The purchase should be accretive to cash flow and earnings, including synergies and excluding transaction and integration costs, by contributing an anticipated incremental earning per share of between 15 and 20 cents and 30 to 40 cents in fiscal years 2014 and 2015, respectively, with the majority of transaction and integration costs being incurred in fiscal years 2013 and 2014. Shares closed up 3.63 percent on the day at $28.10, and have been have traded in a 52-week range of $19.71 to $28.63.