M&A; Activity Around The Globe: HRB, McGladrey & Pullen, OCR, PMC, LMT, QTC Holdings
Tuesday, August 23, 2021 11:10 AM

As U.S. stocks waver in the first hour of trading on Tuesday, several M&A activities took place around the world. Some notable M&A activities are discussed here.

H&R to Sell Consulting Unit for $610 Million

H&R Block Inc. (NYSE: HRB) said Tuesday that it has signed a non-binding letter of intent to sell substantially all of the assets of RSM McGladrey to McGladrey & Pullen, LLP. H&R Block, the top U..S tax preparer, is focusing on its core businesses. Based upon values as of July 31, 2011, total consideration is approximately $610 million, of which approximately $65 million will be financed by H&R Block.   These amounts will adjust at closing based on fluctuations in the balance sheet.   M&P will also assume substantially all liabilities, including contingent payments and lease obligations. In June, H&R Block's new Chief Executive William Cobb told analysts that RSM's falling profit and revenue were a drag on the company's earnings, and that the unit and its troubles were on his "radar screen." In connection with this sale, H&R Block will record a non-cash, after-tax charge of approximately $53 million, or $0.17 per share in the fiscal first quarter ended July 31, 2011. The sale of RSM is expected to close by calendar year end. HRB was trading higher by 0.67 percent to $13.49 on Tuesday.

Omnicare Proposes to Buy PharMerica for $441 Million

Omnicare Inc. (NYSE: OCR) said Tuesday that it has sent a letter to PharMerica Corporation (NYSE:PMC) proposing to purchase all of the outstanding shares of PharMerica common stock for $15.00 per share in cash.  The transaction is valued at approximately $716 million, which includes PharMerica`s net debt. Omnicare`s all-cash proposal represents a 37.2 percent premium over PharMerica`s closing stock price on Monday and a 25.9 percent premium over the average closing price for the one-month period ended Monday. Omnicare believes that the complementary nature of the two companies will create a combined company that is uniquely positioned to generate substantial value for its stockholders and other constituencies.  As a combined company, Omnicare and PharMerica will continue to offer the high-quality services that customers have come to expect. If the deal is completed, the combined company will be a recognized leader in generic utilization and other drug cost management programs and its customers, employees and other constituencies will benefit from the transaction. Shares of PharMerica surged 35.59 percent to $14.82, while Omnicare share gained 6.54 percent to $28.66 on Tuesday.

Lockheed Martin to Acquire QTC Holdings

Lockheed Martin Corp. (NYSE: LMT) said that it has entered into a definitive agreement to acquire QTC Holdings Inc., but did not disclose the terms of the agreement. QTC Holdings is the largest provider of outsourced medical evaluation services to the U.S. government and the U.S. Department of Veterans Affairs (VA), processing more than 450,000 evaluations last year. "QTC's IT-enabled case management services and health care expertise complement our core capabilities in addressing the needs of the Department of Defense, VA and other government agencies," Lockheed Martin Chairman and CEO Bob Stevens said.  "QTC aligns with our IT expertise and adjacent market growth strategy and will be a natural fit within our information systems and global solutions business." The transaction is expected to close before the end of this year and is subject to government approvals. LMT is trading higher by 0.73 percent to $70.43 a share on Tuesday.