PolyOne to Acquire Spartech and 2 Stocks Riding 52-Week Highs
Polyone Corp. (NYSE:POL) and Spartech (NYSE:SEH) entered into a definitive agreement, beneath which PolyOne is to acquire Spartech. Beneath the agreement’s terms, Spartech stockholders are to gain $2.67 in cash and 0.3167 shares of PolyOne common stock for each share of Spartech common stock. Considering the closing price of PolyOne shares on Oct. 23, Spartech stockholders are to receive cash and stock with a value of about $8.00 per Spartech common share, which reflects a total transaction value totaling about $393 million, including the assumption of Spartech’s net debt of $142 million. Spartech reached sales and adjusted EBITDA of nearly $1.2 billion and $53.1 million, respectively, for the year that ended Aug. 4. On a preliminary basis, PolyOne has identified annual synergies of about $65 million to be phased in by the third year after the acquisition. Excluding acquisition-related costs and charges, PolyOne believes that the transaction will be accretive to earnings during the first full year and it will ultimately add 50c to EPS, as the $65 million of synergies are achieved. The transaction, unanimously approved by the Boards of Directors of both companies, is still subject to approval by Spartech’s shareholders and receipt of required regulatory approvals along with additional customary closing conditions. The transaction will likely close during Q1 of 2013. The shares closed at $18.36, up $1.52 or 9.03% on the day. They have traded in a 52-week range of $9.54 to $17.53.
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Rogers Communication (NYSE:RCI): This comprises 41% of Wireless network revenue compared to 36% in the same quarter last year. During Q3, Wireless activated 707,000 smartphones, and almost 36 percent were for new Wireless subscribers. Ending in subscribers with smartphones, which typically generate average monthly revenue per user, or ARPU, about twice that of voice only subscribers, making up 65 percent of the overall postpaid subscriber base as at Sept. 30, 2012, which is a rise from 52 percent at Sept. 30, 2011. The shares closed at $42.67, up $1.32 or 3.19% on the day. They have traded in a 52-week range of $33.58 to $42.26.
Hanover Capital Mort (AMEX:WAC): The ResCap board has given its preliminary approval of the bid by the team of Ocwen Loan Servicing (NYSE:OCN) and Walter Investment Management (AMEX:WAC) of $3 billion as the highest and best bid to exchange for ResCap’s mortgage servicing and origination platform assets. The sale approval hearing before the Bankruptcy Court is to begin on November 19. ResCap stated that it intends to keep working with all parties involved to ensure the best possible outcome for its creditors along with other stakeholders in its Chapter 11 cases. The shares closed at $43.32, up $2.63 or 6.46% on the day. They have traded in a 52-week range of $17.87 to $44.12.