Notable Mergers and Acquisitions of the Day 10/14: MHP, GWW/ACAS, LLY, HWAY

October 14, 2009 10:36 AM EDT

• The McGraw-Hill Companies (NYSE: MHP) confirmed it has signed an agreed to sell BusinessWeek to Bloomberg L.P. The transaction is expected to close during the fourth quarter of 2009.
  
  Terms of the agreement were not disclosed.
  
  Daniel L. Doctoroff, president of Bloomberg L.P, said "BusinessWeek helps better serve our customers by reaching into the corporate suite and corridors of power in government, where news that affects markets and business is made by CEOs, CFOs, deal lawyers, bankers and government officials who typically are not terminal customers."
  
  To facilitate integration of the two news organizations, Norman Pearlstine will become Chairman of BusinessWeek. Pearlstine, Bloomberg's Chief Content Officer, joined Bloomberg last year, building on a distinguished career as Managing Editor of The Wall Street Journal and Editor in Chief of Time Inc.
  
  
• Grainger (NYSE: GWW) signed and closed an all cash acquisition of Imperial Supplies, LLC from American Capital, Ltd. (Nasdaq: ACAS). No other terms of the agreement were disclosed.
  
  Grainger anticipates the transaction should be accretive to earnings by $.03-$.05 a share in 2010 including product and transportation cost savings.
  
  Imperial is a national distributor of quality maintenance products and aftermarket components for the vehicle and fleet industry. The company has built its strong reputation by offering customers highly efficient methods to order and monitor their purchases, serving the fleet market since 1958. In 2008, Imperial had sales of $67 million.
  
  
• Eli Lilly and Company (NYSE: LLY) announced the sale of its Tippecanoe Laboratories manufacturing facility to Evonik Industries AG. Approximately 700 current Lilly employees, representing all full-time non-contracted workers dedicated to the site, will be offered employment with Evonik. Financial terms of the deal were not disclosed.
  
  The sale of Tippecanoe Laboratories is the culmination of Lilly's strategic review of the site that was announced in July 2008.
  
  As a result of this transaction, Lilly will record a $.23 per share charge in the third quarter of 2009 related to asset impairments and restructuring. Lilly will provide an update to its 2009 financial guidance, including the impact from today's announcement, as part of its third-quarter financial results press release on October 21, 2009.
  
  
• Healthways, Inc. (NASDAQ: HWAY) today announced the acquisition of HealthHonors in a cash for stock transaction. Healthways will integrate the HealthHonors science and technology into Embrace, Healthways' comprehensive information system, to enhance sustained engagement in healthy behaviors.
  
  The purchase price includes an upfront cash payment of $14.7 million and a multi-year earn-out arrangement. Although the financial impact of the acquisition is expected to be a net cost of $0.02 per diluted share in Healthways' fourth quarter of 2009, the Company's previously provided full-year earnings guidance remains unchanged.

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