M&A; around the Globe: BJ, Leonard Green, CVC Capital, ORCL, Pillar Data, HOC, FTO
Wednesday, June 29, 2011 11:58 AM

U.S. stocks shed some gains after an industry group reported home sales rebounded 8.2 percent in May from the month before. As the U.S. markets held on to its morning gains, several M&A activities took place around the world. Some notable M&A activities are discussed here.

Leonard Greed to Acquire BJ’s Wholesale Club for $2.8 Billion

Leonard Green & Partners LP and CVC Capital Partners have agreed to acquire BJ’s Wholesale Club Inc. (NYSE: BJ) for $2.8 billion in an all-cash transaction, wrapping up a months-long sale process, BJ’s said in a press release. Under the terms of the agreement, BJ’s shareholders will receive $51.25 per share in cash for each share of BJ’s common stock they hold, representing an approximately 38 percent premium to the closing price of BJ’s shares on June 30, 2010, the day before LGP announced its 9.5 percent ownership stake in the company, and an approximately 7 percent premium to the closing price of BJ’s shares on June 28, 2011. BJ’s board of directors approved the merger agreement and recommends that all BJ’s shareholders vote in favor of the transaction. The merger is subject to the approval of BJ’s shareholders, customary closing conditions and regulatory approvals. The transaction is expected to close during the fourth quarter of 2011. Shares of BJ’s rose 4.72 percent to $50.35 on Wednesday.

Oracle Acquires Pillar Data Systems in a “100 Percent Earn-Out Deal”

Oracle Corp. (Nasdaq: ORCL) said Wednesday that it has entered into an agreement to acquire Pillar Data Systems, a privately-held storage technology company in a transaction that does not involve any upfront payment. Pillar Data is a leading provider of innovative and highly scalable SAN Block I/O storage systems. The acquisition is expected to help Oracle deliver a complete line of storage products that run Oracle software faster and more efficiently. Pillar Data Systems is majority owned by Oracle CEO Larry Ellison. The evaluation and negotiation of the transaction was led by an independent committee of Oracle's board of directors. The transaction is structured as a 100 percent earn-out with no up-front payment. Shares of Oracle were trading higher by 0.06 percent to $32.36 on Wednesday.

Holly, Frontier Merger Approved by Shareholders

Shareholders of Holly Corp. (NYSE: HOC) and Frontier Oil Corporation (NYSE: FTO) approved the merger of the two companies in a $3 billion deal expected to close on Friday. The issuance of Holly common stock was approved by more than 99 percent of the total votes cast at the meeting by Holly shareholders. As per the terms of the agreement, the companies will combine in an all-stock merger of equals. Frontier shareholders will receive 0.4811 Holly shares for each share of Frontier common stock they own at closing. The new entity will trade under the symbol HFC on the New York Stock Exchange after the completion of the transaction. Shares of Holly corp. were trading lower by 0.54 percent to $65.90, and Frontier’s stock was trading lower by 0.69 percent to $31.65 on Wednesday.