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Tencent Holdings Ltd. 03-26 02:53 GMT  
(Report with Analyst's Data Sheet) 
According to some press reports, Tencent (TENCNT) is considering a bid for a 10% stake in A.S. Watson Group, a global retailer, which Temasek,...
Looking For Growth by Cedric Rimaud, CFA
Thermo Fisher Scientific 03-26 02:32 GMT  
(Report with Analyst's Data Sheet) 
TMO's CEO recently called this the "golden age" of the CDMO (contract development and manufacturing organization) business. TMO made a big...
The Golden Age by Carol Levenson, CFA
Thermo Fisher Scientific 03-25 17:06 GMT
(Comment)
Thermo Fisher Scientific, which was unusually restrained on the acquisition front...
Acquisition by Carol Levenson, CFA
Thermo Fisher Scientific, which was unusually restrained on the acquisition front last year, today announced it was buying Brammer Bio, a contract manufacturer for gene and cell therapies, for $1.7 billion in cash. The business will enhance TMO's pharma services business within its Laboratory Products and Services segment. The purchase price represents a hefty 7x multiple of forward sales, but Brammer Bio's growth rate exceeds the projected market growth rate in the mid term of 25%. The acquisition is expected to be modestly accretive to adjusted earnings in the first year. TMO ended 2018 with $2.1 billion of cash on the balance sheet and generated $3.5 billion in free cash flow in 2018. Furthermore, it reduced its net debt by nearly $3 billion in 2018, sending its leverage down from an elevated 4x to 3x, in line with our "improving" credit score. Even if it were to borrow the entire $1.7 billion, TMO could repay it with free cash flow in a year. Therefore we view this as a credit neutral event for TMO.
Nutrien 03-25 02:56 GMT  
(Report with Analyst's Data Sheet) 
Nutrien made its first visit to the bond markets last week in its current corporate form, issuing $1.5 billion to refinance higher cost debt and for other purposes...
Short History by Carol Levenson, CFA
MHP S.A. 03-25 02:31 GMT  
(Report with Analyst's Data Sheet) 
MHP S.A. (MHPSA) 4Q18 results came broadly in line with ours and market expectations. Earlier last year, the company revised downwards its EBITDA guidance for 2018...
Going Merrily Along by Alexandre Dray
ConAgra Foods, Inc. 03-22 15:30 GMT
(Comment)
It was quite a fiscal third quarter (ended February 24th) for ConAgra Brands. Net sales...
Earnings by Dave Novosel, CFA
It was quite a fiscal third quarter (ended February 24th) for ConAgra Brands. Net sales soared 36%, reflecting the acquisition of Pinnacle Foods. Organic net sales were up almost 2%, which is much better than the average over the past few years. Volume accounted for 1.2%, while price/mix added 0.7%. Operating margins rose 230 basis points, attributable primarily to supply chain productivity, improved price/mix in the legacy business, and $12 million in cost synergies from the Pinnacle deal. These savings more than offset higher transportation and input costs. Grocery & Snacks net sales increased 3%, aided by strong snacks sales (e.g. Orville Redenbacher, ACT II, Snack Pack, Slim Jim, and Duke's). Refrigerated & Frozen net sales were up 3.3% behind strong volume growth and the acquisition of Sandwich Bros. of Wisconsin. International net sales fell 11%, mostly because of the sale of the Canadian Del Monte business and the foreign exchange impact. Foodservice net sales dropped nearly 9%, mostly due to the sale of the Trenton facility. Pinnacle Foods' results were disappointing in that pro forma sales declined in the mid-single digits. Management is focused on three issues in that segment currently; Birds Eye, Duncan Hines, and Wish-Bone. CAG reduced debt by $435 million in Q3. In addition, debt was slashed by another $250 million in the fourth quarter, using the proceeds from the sale of its Wesson oil business. Nonetheless, leverage is still well over 6x, and it may take a while to get back to pre-deal metrics. Management's goal is to reach debt/adjusted EBITDA of 3.5x by the end of fiscal 2021. It does not intend to make any divestitures to reach that target.
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Mar 13, 2019 | WSJ
EM on JC Penney '' Long Way to Go"
Feb 26, 2019 | Barron's
GC on Investment Grade Top Ten Featured: - Q - "2019's Best Corporate Bond Bets Are Brought to You From Last Year's M&A"
Feb 20, 2019 | Bloomberg
DN on Rural Phone companies: Regarding the (Windstream) ruling - Q- "The court decision speeds up what had been seen as a slow and steady deterioration for the phone companies."
Feb 19, 2019 | WSJ
CL on Royal Caribbean -Q-"...Royal Caribbean also has developed strong distribution relationships with travel agents."
Jan 10, 2019 | Bloomberg
CL on PG&E's Downgrade to Junk -Q- "The other shoe has dropped" for PG&E...which might be the tipping point in favor of a bankruptcy decision."
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