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Strategies & Market Trends : Speculating in Takeover Targets -- Ignore unavailable to you. Want to Upgrade?

To: richardred who wrote (3141)	8/27/2012 10:59:09 PM
From: Paul Senior	Respond to of 7239

Appears to be a nice catch at $15.

To: richardred who wrote (3141)	10/9/2012 12:41:17 PM
From: richardred	Read Replies (3) \| Respond to of 7239

IMO-This deal and recent similar related type deals should add speculative appeal to my GFF & QEPC. An improving housing market helps also. Spectrum to Acquire Stanley Home Business for $1.4 Billion By David Welch and Jeffrey McCracken - Oct 9, 2012 10:44 AM ET Spectrum Brands Holdings Inc. (SPB), the consumer-products company controlled by Harbinger Group Inc. (HRG), agreed to buy Stanley Black & Decker Inc. (SWK)’s home unit for $1.4 billion in cash, expanding into the home-improvement and residential-hardware market. The purchase will add 75 cents to 80 cents per share in profit in fiscal 2013, the Madison, Wisconsin-based company said today in a statement. Spectrum’s shares jumped the most in more than two years. Enlarge image Spectrum Brands Holdings Inc. have agreed to buy Stanley Black & Decker Inc.'s home unit for $1.4 billion. Photographer: David Paul Morris/Bloomberg The deal will give Spectrum, which emerged from bankruptcy in August 2009, brands including residential lockset-maker Kwikset and Pfister, a manufacturer of faucets. It will be financed exclusively with debt and is Spectrum’s largest transaction since the $661 million purchase of kitchen-appliance maker Russell Hobbs in 2010. Investors will be curious to see how quickly Spectrum can boost earnings from the unit and if taking on such a large deal brings on too much debt, said Hamed Khorsand, an analyst with BWS Financial in Woodland Hills, California. “Spectrum has been selective in trying to find acquisition targets,” Khorsand said in a telephone interview. Investor reaction “depends on how accretive the deal is and how much debt it brings. I haven’t seen the management team do something as large as this since bankruptcy.” Cash Flow Analysts expect Spectrum to make $2.90 a share in fiscal 2013, according to the consensus of estimates compiled by Bloomberg. Spectrum is 57 percent-owned by Harbinger Group, which is affiliated with the hedge fund run by Philip Falcone. The hardware and home improvement unit’s cash flow will help pay down debt that Spectrum will take on to buy the company, Spectrum Chief Executive Officer Dave Lumley said today in the statement. The acquisition is expected to add an incremental $90 million of free cash flow in the first two years after the deal closes, the company said. After the deal is completed, the hardware and home improvement unit will operate separately and will continue to be managed by Greg Gluchowski, who will report to Lumley. Spectrum rose 12 percent to $45.96 at 10:41 a.m. in New York, the biggest intraday gain since May, 2010. The shares had increased 50 percent this year through yesterday. Stanley Black & Decker fell 0.9 percent to $73.53 and had advanced 9.8 percent this year through Oct. 8. Since emerging from bankruptcy, Spectrum has increased sales through acquisitions. The 2010 merger with Russell Hobbs boosted sales to an estimated $3.2 billion this year from $2.6 billion in 2010. Stanley’s hardware unit, which generated $985 million in revenue in the year ended June, will push revenue to about $4.2 billion. Spectrum’s divisions include Remington personal-care products, a pet-supplies division that has 13 different brands and a home and garden business that sells Black Flag and Hot Shot pesticides, among others. Stanley said in July it hired Goldman Sachs Group Inc. to explore a sale of the hardware and home improvement unit and expected net proceeds of “significantly” more than $1 billion. To contact the reporters on this story: David Welch in New York at dwelch12@bloomberg.net; Jeffrey McCracken in New York at jmccracken3@bloomberg.net To contact the editor responsible for this story: Jeffrey McCracken at jmccracken3@bloomberg.net bloomberg.com

To: richardred who wrote (3141)	10/16/2012 12:50:57 AM
From: richardred	Read Replies (1) \| Respond to of 7239

QEPC is taking another page from their strategy again- Message 28324497 Q.E.P. Co., Inc. Announces Bid to Acquire Harper Brush Works BOCA RATON, Fla., Oct. 15, 2012 (GLOBE NEWSWIRE) -- Q.E.P. CO., INC. (QEPC.PK) (the "Company") announced it has executed an asset purchase agreement ("APA") with Harper Brush Works, Inc. ("Harper Brush") as an initial "stalking horse bid" for substantially all of the assets of Harper Brush. Harper Brush is a 112-year-old manufacturer and distributor of quality cleaning products headquartered in Fairfield, Iowa. The company's core products include brushes, push brooms, mops, buckets, dust pans, house wares, long-handled cleaning tools, microfiber/dusting tools, and eco-friendly cleaning products. On October 1, 2012 Harper Brush filed motions with the U.S. Bankruptcy Court for the Southern District of Iowa seeking orders to approve the APA for the Company to purchase substantially all of its assets under section 363 of Chapter 11 of the United States Bankruptcy Code, and to approve the auction and bidding procedures. Under the APA, the Company would acquire all of Harper Brush's real estate, inventory, intellectual property and other assets for approximately $2.2 million. The auction is to be held in case other potential buyers present proposals and is expected to occur over the next 45 days. Closing of the transactions contemplated under the APA is subject to the satisfaction of customary closing conditions and to court approval, which may not occur. Q.E.P. Co., Inc., founded in 1979, is a leading worldwide manufacturer, marketer and distributor of a comprehensive line of hardwood flooring, flooring installation tools, adhesives and flooring related products targeted for the professional installer as well as the do-it-yourselfer. Under brand names including QEP(R), ROBERTS(R), Capitol(R), Harris(R)Wood, Vitrex(R), PRCI(R), BRUTUS(R) Nupla(R) and Elastiment(R), the Company markets over 3,000 flooring and flooring related products. In addition to a complete hardwood flooring line, Q.E.P. products are used primarily for surface preparation and installation of wood, laminate, ceramic tile, carpet and vinyl flooring. The Company sells its products to home improvement retail centers and specialty distribution outlets in 50 states and throughout the world. This press release contains forward-looking statements, including statements regarding required bankruptcy court approvals for, among other things, the APA, participation of other bidders in the auction process, anticipated auction and closing dates, and the satisfaction of the APA's closing conditions. These statements are not guarantees of future actions and actual circumstances could differ materially from expected results. finance.yahoo.com