Notable Mergers and Acquisitions of the Day 01/03: (HRL)/(UL) (MSFT) (GPS) (DDD)

January 3, 2013 9:57 AM EST
* Hormel Foods Corp. (NYSE: HRL) entered into a definitive agreement to acquire the Skippy peanut butter business from Unilever United States Inc. (NYSE: UL), of Englewood Cliffs, N.J.

The transaction is subject to customary closing conditions, including the receipt of regulatory approvals in the United States and other jurisdictions.

Total annual sales are expected to be approximately $370 million, with nearly $100 million of those sales outside the United States. The purchase price is approximately $700 million. Hormel Foods expects this acquisition to be modestly accretive in fiscal 2013. Full year accretion in fiscal 2014 is expected to be between 13 and 17 cents per share.

* According to the WSJ, Microsoft (Nasdaq: MSFT) has acquired id8 Group R2 Studios Inc. ("R2 Studios") for an undisclosed sum.

R2 Group is a home-entertainment technology start up that Microsoft nabbed to bolster its Xbox unit. The company specializes in technology tied to distributing and displaying digital media on TVs.

The WSJ noted that R2 Group was also in talks with Apple (Nasdaq: AAPL) and Google (Nasdaq: GOOG) over a possible deal.

Microsoft is working on making its Xbox more than just a video game system, seeking to turn the device into a full-on home entertainment hub. Microsoft's Xbox is still one of the hottest-selling gaming consoles globally, though the venerable software giant will be facing some stiff competition when it releases the newest version of the console later on this year (rumored). Apple and Google, for example, have begun offering video games that have largely compared to some of those available on the Xbox.

* Gap Inc. (NYSE: GPS) acquired INTERMIX Holdco Inc., a multi-brand specialty retailer of luxury and contemporary women’s apparel and accessories, based in New York.

INTERMIX operates 32 boutiques across North America, along with an e-commerce site, offering a mix of luxury brands including up-and-coming designers for customers seeking elevated fashion. Gap Inc. sees an opportunity to expand INTERMIX’s unique network of stores, as well as add significant visibility and enhancements to its online site.

The transaction was completed on December 31, 2012, with Gap Inc. purchasing INTERMIX Holdco Inc. for approximately $130 million in cash

* 3D Systems (NYSE: DDD) has signed a definitive agreement to acquire Geomagic, Inc., a leading global provider of 3D authoring solutions including design, sculpt and scan software tools that are used to create 3D content and inspect products throughout the entire design and manufacturing process. This acquisition is subject to customary closing conditions, and is expected to close during the first quarter of 2013, after those conditions are met. Terms of the transaction were not disclosed.

The combination of Geomagic's powerful sculpting, modeling, scanning and inspecting software tools with 3D Systems' portfolio strengthens its 3D authoring platform and positions the company for accelerated growth in the fast-growing, 3D content-to-print space. The transaction adds complementary products and technology, increases the company's reseller coverage globally and is expected to be accretive to its non-GAAP earnings in the first full year following the completion of transaction.

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