Notable Mergers and Acquisitions of the Day 06/03: (SFD) (RIO) (DRCO)

• Smithfield Foods, Inc. (NYSE: SFD) has terminated negotiations negotiations with respect to its proposed joint delisting takeover bid, together with Mr. Pedro Ballve, to acquire the remaining shares of Campofrio Food Group, S.A.
  
  The company cites adverse "economic conditions in Europe that show few signs of abating, and the recent decline in our stock price."
  
  
• Rio Tinto (NYSE: RIO) is trading lower Friday morning following reports the miner has struck a deal for continued exploration in Western Australia.
  
  According to the BBC, Rio Tinto will pay Aboriginals in Western Australia $2 billion over 40 years for land exploration rights in the region.
  
  Rio Tinto will be given rights to about 70,000 square kilometers (about 43,500 square miles) in the mineral-rich region.
  
  In the deal, Rio Tinto will ensure that about 14 percent of its workers are Aboriginals and 14 percent of contracts go to Aboriginal businesses.
  
  Deals were struck with five Aboriginal councils, meaning Rio will not have to do deals with individual land owners, saving them both time and money.
  
  Iron ore mining in the region is also expected to increase from 220 million tons to about 400 million tons.
  
  
• Dynamics Research Corporation (Nasdaq: DRCO) reports that it has entered an agreement to acquire High Performance Technologies, Inc.
  
  HPTi reported revenue of $90 million for calendar 2010.
  
  Terms of the merger agreement include a cash price of $143 million with closing anticipated for June 30, 2011 following the expiration of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
  
  Further, DRC will replace its current credit facility with a $110 million five-year term loan, a $20 million revolving credit facility and $40 million of subordinated debt with a six-year term. The senior credit facility will be led by Bank of America and will include SunTrust Bank and PNC Bank as Lead Arrangers. Ares Capital Corporation will provide the subordinated debt financing, which was arranged by B Riley. Total debt at closing is anticipated to be approximately four-times the most recent twelve months pro-forma EBITDA of $39 million adjusted for the combined businesses.
  
  KippsDeSanto & Co. is acting as exclusive financial advisor to HPTi in this transaction.

To keep up on all the Mergers & Acquisitions data in real-time, go to our new Mergers and Acquisitions Central page.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• B. Riley Financial (RILY) touching day low of $27, giving back half the day's gains
• Midday movers: PepsiCo, JetBlue fall; GM, Danaher and UPS rise
• Midday movers: Tesla, Blackstone, Las Vegas Sands fall; DR Horton rises