Inside Arbitrage

  In a week marked by significant moves in the casino industry, the acquisition of Bally’s Corporation (BALY) by its largest shareholder, Standard General, has captured the spotlight. This deal is a major development for both companies and the gaming sector as a whole, with a transaction valued at an impressive $4.6 billion, including debt. https://www.insidearbitrage.com/2024/07/standard-general-goes-all-in-with-ballys-merger-arbitrage-mondays/ A Strategic Move in the Casino Industry Bally's Corporation, a renowned name in the casino and gaming industry, is set to undergo a transformative acquisition. Standard General, which already holds approximately 26% of Bally's, has announced plans to purchase the remaining shares at $18.25 each. This offer represents a significant 34.99% premium over Bally's last closing price of $16.98. This move underlines Standard General's confidence in Bally’s potential and its commitment to expanding its footprint in the casino and ...

  MINISO, a ten-year-old Chinese retailer offers products that are heavily influenced by Japanese design. It was listed on a U.S. exchange in 2020. Since its listing, the company managed to expand its intellectual property (IP) licenses from 17 to 80 including Barbie products. In its recent call transcript, the company mentioned that half of the store’s Stock Keeping Units (SKUs) related to the recent blockbuster “Barbie” series were sold out within the first 5 days of launch! Get access to premium merger arbitrage content. Subscribe today The company operates on a franchise model, and its retail partners open and operate their own stores under its brand name. They share part of in-store sales proceeds with the company and are responsible for the stores’ capital expenditure and operating expenses. This model carries both the potential for profitability and associated risks as individual franchisees might suffer if the company expands too rapidly. In its Q4 FY2023...

  Based in Dublin, Ireland, Accenture plc (ACN) is an Irish-American digital consultant, specializing in information technology services and consulting. It helps businesses achieve their strategic objectives through digital transformation with operations across 49 countries Accenture’s current clients include 91 of the Fortune Global 100 and more than three-quarters of the Fortune Global 500. Accenture has a larger presence in Europe and the United States compared to other regions. As of 2022, Accenture is considered the largest consulting firm in the world by number of employees with about 733,000 employees worldwide. Read More Info @ https://www.insidearbitrage.com/2023/10/insatiable-acquisition-machine-accenture-buyback-wednesdays/ Accenture has been consistently outperforming the S&P 500 over the last 10 years .  The share price is up 15.6% over the last year and 13.3% this year. On September 28, 2023, the board of the company authorized an additional $4 bill...

  AerCap is the global leader in aviation leasing with a fleet value of  $34.7 billion. There is a notable upward trend in aircraft leasing, with approximately 48% of the global commercial aircraft under lease agreements. The company had a record third quarter in terms of leasing extension rates, which were as high as 80%! Read More Info @ https://www.insidearbitrage.com/2023/11/aercap-flags-a-new-500-million-share-repurchase-buyback-wednesdays/ Key Insights AerCap has an attractive portfolio of over 1,700 aircraft, approximately 1,000 engines and over 300 helicopters, and an order book of 380 of the most in-demand aircraft in the world. New technology aircraft comprise 69% of its aircraft fleet. The global air travel industry has rebounded post-pandemic, providing strong demand for AerCap’s leases. Leased aircraft have tripled over the past 20 years. AerCap repurchased approximately 20 million shares and leased, purchas...

  In the summer of 2022, I picked one of the hottest week of the year, with temperatures approaching 100 degrees Fahrenheit, to spend three days in Paris, France. We booked a guided tour of the Eiffel Tower and unfortunately I picked the tour that requires you to climb the steps to the top of the tower instead of riding the elevator up. As memorable as the tower was, having to trudge up countless flights of stairs in the heat was even more memorable. It turns out that the elevators that travel up and down the legs of the Eiffel Tower at an angle require custom, powerful shock absorbers that are designed by ITT engineers. Read More Info @ https://www.insidearbitrage.com/2023/10/itt-approves-new-1-billion-share-repurchase-buyback-wednesdays/ ITT Inc. (ITT) produces specialty components for the aerospace, transportation, energy, and industrial markets. Initially named ITT Industries, Inc., the company was spun off from its parent company, the International Telephone & Telegr...

  In the latest shake-up in the restaurant industry, Darden Restaurants, Inc. has announced its acquisition of Chuy's Holdings, Inc . This merger is set to create a powerhouse in the casual dining sector, bringing together two beloved brands under one corporate roof. Here’s what you need to know about this exciting development. Chuy’s Holdings Inc. ( CHUY ):  $37.08 Market Cap:  $643.38 M Deal Size:  $605 M Back in 2014, a heated battle between Darden Restaurants  (DRI)  and the activist hedge fund Starboard Value brought to light some surprising inefficiencies within Darden’s flagship chain, Olive Garden. In an attempt to win control of Darden’s board, Starboard pointed out not only the wastefulness of unlimited breadsticks at Olive Garden but also its puzzling decision to stop salting its pasta water as “adding salt to the boiling water could jeopardize warranties on pots”. These small yet significant details became symbols of the broader issues w...

  As the 3D printing industry continues to mature, consolidation has become a key theme. In this week's edition of "Merger Arbitrage Mondays," we delve into the latest trends and deals shaping the future of this innovative sector. Read More Info @ https://www.insidearbitrage.com/2023/06/consolidation-in-the-3d-printing-industry-merger-arbitrage-mondays/ The Rise of Consolidation in 3D Printing Why Consolidation? The 3D printing industry is evolving rapidly, and consolidation is a natural progression. By merging, companies can combine resources, technology, and market reach to accelerate growth and innovation. This consolidation is not just about survival but about creating stronger, more competitive entities. Recent Mergers and Acquisitions In the latest "Merger Arbitrage Mondays," we highlight several significant mergers and acquisitions within the 3D printing sector. These include: Company A Acquires Company B : This strategic move allow...

  Share repurchase programs have regained momentum this year, marking a significant revival from a relatively subdued 2023. The ODP Corporation (ODP) revealed a $1 billion plan,  constituting nearly half of its market capitalization  at announcement. It is the largest buyback in terms of percentage and tops our list. The involvement of David Einhorn and Greenlight Capital (check out the  full Greenlight portfolio here ) might explain the large buyback at ODP (the old Office Depot). We would have preferred to see the company pay down debt instead of committing such a large amount of capital to a buyback at a time when markets are hitting all-time highs. Read More Info @ https://www.insidearbitrage.com/2024/03/truecar-supercharges-buyback-with-100-million-buyback-wednesdays/ The current earnings season has been characterized by numerous high-profile buyback announcements, starting with Meta Platforms, Inc. (META) announcing a $50 billion share repurchase plan. Th...

  In January 2022, Microsoft announced its plan to acquire Activision Blizzard, a major player in the gaming industry, for a staggering $69 billion. This acquisition, one of the largest in tech history, aimed to bolster Microsoft's position in the gaming market, providing it with a wealth of popular franchises, including Call of Duty, World of Warcraft, and Candy Crush. However, this ambitious deal has faced numerous legal challenges and scrutiny from regulatory bodies worldwide, casting uncertainty over its completion. Read More Info @ https://www.insidearbitrage.com/2023/06/microsofts-acquisition-of-activision-blizzard-faces-legal-hurdles/ Regulatory Scrutiny The proposed acquisition has attracted significant attention from antitrust regulators in multiple jurisdictions. The United States Federal Trade Commission (FTC), the European Commission, and the UK's Competition and Markets Authority (CMA) have all launched investigations to determine whether the merger would ...

Eli Lilly and Company (Lilly) has recently made headlines with its acquisition of Morphic Therapeutic, a move set to bolster its immunology pipeline. This acquisition marks a significant step for Lilly in its quest to enhance its therapeutic offerings and solidify its position in the competitive pharmaceutical landscape. Read More Info @ https://www.insidearbitrage.com/2024/07/lilly-boosts-immunology-pipeline-with-morphic-acquisition-merger-arbitrage-mondays/ Background of Morphic Therapeutic Morphic Therapeutic is a biotech company specializing in the development of oral integrin therapies for patients with serious chronic diseases, including autoimmune and inflammatory diseases. The company's proprietary MInT (Morphic Integrin Technology) platform has shown promising results, making it an attractive acquisition target for larger pharmaceutical companies looking to expand their portfolios. Details of the Acquisition Morphic Holding Inc. ( MORF ): $55.78 Market Cap: $2...