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MSMB Capital Management, a fund specializing in long-term strategic investments in healthcare and biotechnology businesses, today announced that it has made a proposal to the Board of Directors of SeraCare Life Sciences, Inc. (Nasdaq: SRLS) Trading at $3.93, Up $0.44, to acquire all the outstanding common stock of SeraCare for $4.25 per share or an aggregate of $82 million. This proposal represents an approximate 22% premium above the closing price of SeraCare stock of $3.49 on June 22nd, 2011. MSMB's offer is conditioned on completion of cursory due diligence and other customary provisions. MSMB's offer is not subject to any financing condition.
What They Do: SeraCare serves the global life sciences industry by providing vital products and services to facilitate the discovery, development and production of human diagnostics and therapeutics.
Genesco Inc. (NYSE: GCO) Trading at $49.15, Up $4.01. Today announced that it has acquired Schuh Group Ltd., a specialty retailer of casual and athletic footwear based in the United Kingdom. The purchase price paid at closing was 100 million pounds Sterling, subject to closing adjustments, less 29.5 million pounds outstanding under existing Schuh credit facilities, which remain in place. The purchase agreement also provides for deferred purchase price payments totaling 25 million pounds, payable 15 million pounds and 10 million pounds on the third and fourth anniversaries of the closing, respectively, subject to the payees' not having terminated their employment with Schuh under certain specified circumstances. Genesco has also agreed to implement a bonus plan for certain members of Schuh management which will pay a total of up to 25 million pounds in cash bonuses in 2015 subject to the Schuh business having achieved specified performance targets.
Genesco funded the initial payment and associated expenses with borrowings under an existing U.S. credit facility of $89 million and the balance from cash on hand. Genesco expects the acquisition will be accretive to earnings per share in its current fiscal year, excluding any merger and integration expenses and compensation expense attributable to the deferred purchase price payments because they are contingent upon the continued employment of the payees.
What They Do: Genesco Inc., a Nashville-based specialty retailer, sells footwear, headwear, sports apparel and accessories in more than 2,285 retail stores throughout the U.S. and Canada, principally under the names Journeys, Journeys Kidz, Shi by Journeys, Lids and Lids Locker Room, Johnston & Murphy, and Underground Station.
H.B. Fuller Company (NYSE: FUL) Trading at $23.62, Up $1.67. Today reported financial results for the second quarter that ended May 28, 2011.
Net income for the second quarter of 2011 was $25.1 million, or $0.50 per diluted share, versus $11.0 million, or $0.22 per diluted share, in last year's second quarter. Net income for the second quarter of 2010 included exit costs and non-cash impairment charges associated with the exit of the Company's polysulfide insulating glass sealant product line in Europe totaling $8.4 million after-tax. After adjusting for these charges, second quarter 2010 net income was $19.5 million, or $0.39(1) per diluted share. Diluted earnings per share in the second quarter of 2011 increased 28 percent compared to the adjusted results of the prior year.
Net revenue for the second quarter of 2011 was $393.7 million, up 13.2 percent versus the second quarter of 2010. Higher average selling prices, higher volume, favorable foreign currency translation and acquisitions positively impacted net revenue growth by 8.2, 0.3, 3.0 and 1.7 percentage points, respectively. Organic revenue grew by 8.5 percent year-over-year. On a sequential basis, net revenue increased approximately 16 percent relative to the first quarter of 2011, driven by normal seasonal patterns and incremental price increases.
Gross profit margin was down 50 basis points versus the second quarter of 2010, due to the cumulative effect of escalating raw material costs over the past year. Gross profit margin improved by 10 basis points versus the previous quarter as a combination of price increases and product reformulation more than offset raw material cost inflation. Relative to the prior year, SG&A expense was higher by 3.1 percent, but down 190 basis points as a percentage of net revenue.
What They Do: For nearly 125 years, H.B. Fuller has been a leading global adhesives provider focusing on perfecting adhesives, sealants and other specialty chemical products to improve products and lives.
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