Takeover deals can be a signal of positive market sentiment, indicating that the acquiring company is confident in its growth prospects and is willing to invest in expanding its market share. Such deals often lead to an increase in stock prices as they indicate potential value creation and synergies for the acquiring company. Takeover deals may provide an opportunity for investors to capitalize on market inefficiencies and earn profits through arbitrage strategies, such as buying the target company’s stock at a discount to the offer price and profiting from the price convergence upon deal completion.
Here are three takeover targets for the week –
Taro Pharmaceutical Industries Ltd. – SYM: TARO
Recent Price: $38.99
Takeover Action: Taro Pharmaceutical Industries (TARO) received a non-binding offer from its majority shareholder Sun Pharmaceutical to acquire shares it doesn’t already own for $38 per share in cash.
Description: Taro Pharmaceutical Industries Ltd., a science-based pharmaceutical company, develops, manufactures, and markets prescription and over-the-counter pharmaceutical products in the United States, Canada, Israel, and internationally. The company also develops and manufactures active pharmaceutical ingredients primarily for use in its finished dosage form products.
LL Flooring Holdings, Inc. – SYM: LL
Recent Price: $4.74
Takeover Action: LL Flooring (LL) confirmed that it has received an unsolicited, non-binding proposal from Cabinets To Go, a subsidiary of F9 Brands to acquire all of the outstanding shares of the company for $5.76 per share in cash. F9 Brands is owned by LL Founder Thomas D. Sullivan.
Description: LL Flooring Holdings, Inc., together with its subsidiaries, operates as a multi-channel specialty retailer of hard-surface flooring, and hard-surface flooring enhancements and accessories. The company offers hard-surface flooring including, waterproof hybrid resilient, waterproof vinyl plank, engineered hardwood, laminate, bamboo, tile, and cork products; and flooring enhancements and accessories, including moldings, underlayment, adhesives, and tools under the Bellawood and Coreluxe brand names. It also provides in-home delivery and installation services. The company also offers its products through stores, digital platform, and catalogs. The company was formerly known as Lumber Liquidators Holdings, Inc. and changed its name to LL Flooring Holdings, Inc. in January 2022. LL Flooring Holdings, Inc. was founded in 1994 and is headquartered in Richmond, Virginia.
Amedisys, Inc. – SYM: AMED
Recent Price: $92.50
Takeover Action: Amedisys (AMED) announced that on May 26, 2023, the company received an unsolicited proposal from Optum, a diversified health services company, to acquire all of the outstanding shares of Amedisys’ common stock in an all-cash transaction for $100 per share.
Description: Amedisys, Inc., together with its subsidiaries, provides healthcare services in the United States. It operates through four segments: Home Health, Hospice, Personal Care, and High Acuity Care. The Home Health segment offers a range of services in the homes of individuals for the recovery of patients from surgery, chronic disability, or terminal illness, as well as prevents avoidable hospital readmissions through its skilled nurses; nursing services, rehabilitation therapists specialized in physical, speech, and occupational therapy; and social workers and aides for assisting its patients. The Hospice segment offers services that is designed to provide comfort and support for those who are dealing with a terminal illness, including cancer, heart disease, pulmonary disease, or Alzheimer’s. The Personal Care segment provides assistance for patients with the activities of daily living. The High Acuity Care offers essential elements of inpatient hospital, skilled nursing facility care, and palliative care to patients in their homes. Amedisys, Inc. was incorporated in 1982 and is headquartered in Baton Rouge, Louisiana.