$54 Billion Express Scripts Deal Tops Big Week for M&A Market

​The past week saw plenty of multi-billion-dollar deals. The M&A highlights of the past week included three potential or completed public-to-private leveraged buyouts (LBOs) and three traditional M&A transactions, led by Cigna's $54 billion acquisition of Express Scripts.

• On Monday, March 5th, Seattle-based specialty fashion retailer Nordstrom (NYSE: JWN) was considering a public-to-private bid offer from Leonard Green & Partners for $8.4 billion. However, the prospective transaction was subsequently cancelled. Over the next two days, Leonard Green & Partners closed its previously announced acquisition of product packaging firm, Pro Mach for $2.2 billion.

• On Tuesday, March 6th, CommerceHub (NASDAQ: CHUBA) agreed to a $1.1 billion public-to-private LBO, led by Sycamore Partners and GTCR. The Albany-based e-Commerce firm develops cloud-based supply chain software that allows retail businesses to expand product offerings while simultaneously reducing inventory risk.

• Last Tuesday, Juno Therapeutics (NASDAQ: JUNO) was acquired by Celgene (NASDAQ: CELG) for $10 billion. Seattle-based Juno Technologies, formally known as FC Technologies, develops cell-based immunotherapies for cancer treatment. The specialized treatments genetically modify a patient's immune cells, so they can fight off growing cancer.

• Last Tuesday, Scripps Networks Interactive (NASDAQ: SNI) was acquired by Discovery Communications (NASDAQ: DISCA) for $14.6 billion. The new firm, Discovery, Inc., will offer 19 cable networks, such as the following: Discovery, Food Network, HGTV, ID and TLC, and Eurosport. CEO David Zaslav expects the combined unscripted programming powerhouse will result in $350 million operating efficiencies from synergies.

• On Thursday, March 8th, Express Scripts Holding Co. (NASDAQ: ESRX) reached a definitive agreement to be purchased by health insurance giant Cigna (NYSE: CI) for $54 billion. The overall deal will be roughly $67 billion upon the assumption of $13 billion of Express Scripts’ net debt. The St. Louis-based firm is a pharmacy-benefits manager (PBM). 

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• Last Thursday, Calpine (NYSE: CPN) completed its $5.6 billion privatization transaction led by a consortium of Energy Capital Partners, Canada Pension Plan Investment Board, and Access Industries. The Houston-based power generator owns roughly 80 power plants across America and Canada.