Toys "R" Us Canada Finds A Safety Net in Liquidation Auction

​Last week, there were a number of M&A deals that fell in Skyline's industries of focus: food and agriculture, technology, healthcare, and industrials, broadly speaking. Within technology, one of the week's largest valued deals was SS&C Technologies acquisition of DST's financial services and healthcare segments. Within domestic healthcare, Tacoma-based Sound Physicians agreed to be bought out by Boston-based PE firm, Summit Partners. Within food, Hearthside Food Solutions and Smashburger engaged in transactions. Notable global market deals include Procter & Gamble’s acquisition of Merck's consumer health business and the liquidation auction of Toys "R" Us' Canadian stores. 

• Last Friday, Fairfax Financial Holdings (TSE: FFH) reached a deal to acquire the 82 Canadian stores of bankrupt Toys "R" Us for $237 million, topping an offer from Isaac Larian’s MGA Entertainment. Fairfax would plan to continue operating the stores under the same name.

• Last Monday, DST Systems (NYSE: DST) was acquired by SS&C Technologies (NASDAQ: SSNC) for $5.4 billion. SS&C will gain additional scale and broader reach across various institutional and wealth management and healthcare with the addition of the Kansas-City-based DST Systems' pre-existing financial services and healthcare businesses.

• Last Thursday, Merck (ETR: MRK) reached a definitive agreement to divest its consumer health business to Procter & Gamble Company (NYSE: PG) for $4.2 billion (3.4 billion Euros). The deal enables P&G to enhance its successful consumer health business with a diversified portfolio of growing physician-based brands across a geographic business environment.

• This past Saturday, Sound Physicians reached a definitive agreement to be sold to Summit Partners via a $2.2 billion leveraged buyout (LBO). The Tacoma-based physician organization provides services across the acute episode of care, mainly emergency medicine, critical care, hospital medicine, etc.

• Last Tuesday, Hearthside Food Solutions reached a definitive agreement to be acquired via LBO by Charlesbank Capital Partners and Partners Group for $2.4 billion. Hearthside manufactures and provides consumer baked foods, snacks, and packaging services across various brand platforms as one of the largest food contracting companies in the U.S.
  

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• Last Tuesday, Smashburger Master was acquired by Jolibee Foods (PHS: JFC) for $100 million, whereby Jolibee will own 85% of Smashburger after the transaction. Smashburger operates a fast-casual food chain with offers popular burgers, sandwiches, and shakes across the United States and less than a dozen countries abroad.