Notable Mergers and Acquisitions of the Day 12/21: TD, MATK, GEO

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TD Bank Group (NYSE: TD) announced Tuesday that it has agreed to acquire Chrysler Financial for cash consideration of $6.3 billion from Cerberus Capital Management.

TD, the second largest bank in Canada, said the purchase will consist of net assets of $5.9 billion and roughly $400 million in goodwill.

"This transaction represents a unique opportunity to purchase a great organic growth platform at an attractive price," said Ed Clark, Group President and CEO, TD. "Chrysler Financial is a well-run business with the capacity for significantly higher returns over the next several years. This acquisition will allow us to leverage our lending expertise and financial strength to expand our presence in a large North American market with tremendous potential upside."

The former financing arm of Chrysler Group had its operations reduced as a part of the restructuring under the U.S. government last year.

The acquisition is expected to close in the fiscal second quarter of 2011 for TD, which added that the transaction will add approximately $100 million in adjusted earnings in 2012, the first full year of operations for the bank.
Martek Biosciences (Nasdaq: MATK) announced plans to be acquired by DSM for $31.50 per share in cash, or $1.087 billion.

The agreed price represents a premium of 35% to Martek's closing share price of US$23.36 on December 20, 2010.

The acquisition is structured as an all-cash tender offer which is expected to commence between 10 January 2011 and 25 January 2011.

The transaction is expected to close in the first or second quarter of 2011.
The GEO Group (NYSE: GEO) announced that they have signed an agreement for the acquisition of Behavioral Interventions Incorporated.

GEO will acquire BI for $415 million in an all cash transaction, excluding transaction related expenses.

GEO will not assume any debt as a result of the transaction.

The acquisition is expected to increase GEO’s total annual revenues by approximately $115 million to more than $1.6 billion in FY11.

Wells Fargo acted as GEO’s financial advisor. Akerman Senterfitt served as GEO’s legal advisor. Harris Williams & Co. acted as BI’s financial advisor, and Bobby Sood acted as BI’s industry consultant. Fried Frank served as BI’s legal advisor.