Notable Mergers and Acquisitions of the Day 05/02: (ASNA)/(CHRS) (MCHP)/(SMSC) (ESGR)

• Charming Shoppes, Inc. (Nasdaq: CHRS) confirmed a deal to be acquired by Ascena Retail Group, Inc. (Nasdaq: ASNA) for $7.35 per share in cash, or approximately $890 million.
  
  The agreement comes at a premium of 25% to the closing market price of Charming Shoppes common stock on May 1, 2012 and an 89% premium to the unaffected share price of Charming Shoppe's common stock on November 30, 2011, the day prior to our announcement of our strategic review process.
  
  The tender offer is expected to commence within 10 business days. Subject to customary conditions and approvals, the transaction is expected to close during the second calendar quarter of 2012.
  
  
• Microchip Technology Incorporated (Nasdaq: MCHP), and Standard Microsystems Corporation (Nasdaq: SMSC) announced that Microchip has signed a definitive agreement to acquire Standard Microsystems Corporation (“SMSC”) for $37.00 per share in cash, which represents a total equity value of about $939 million, and a total enterprise value of about $766 million, after excluding SMSC’s cash and investments on its balance sheet of approximately $173 million. The acquisition has been approved by the Boards of Directors of each company and is expected to close in the third quarter of calendar 2012, subject to approval by SMSC stockholders, regulatory approvals and other customary closing conditions.
  
  From the release: "SMSC in its most recent fiscal year ending February 29, 2012 reported net sales of $412 million, non-GAAP gross margin of 54.4% of sales, and non-GAAP operating profit of 12% of sales. We expect this acquisition will be accretive to Microchip’s non-GAAP earnings in the first full quarter after completion of the acquisition. We look forward to completing this transaction in the third calendar quarter of 2012."
  
  
• Late Tuesday, Stone Point Capital LLC and J.C. Flowers & Co. LLC announced that Trident V, a private equity fund managed by Stone Point Capital, has entered into an agreement to acquire 1.2 million shares of Enstar Group Limited (Nasdaq: ESGR) from J. Christopher Flowers and private investment funds advised by J.C. Flowers & Co. These shares represent an economic ownership interest of approximately 7.2% in Enstar. The transaction will be completed in two tranches, with the first tranche of 678,750 shares scheduled to close on May 14, 2012 and the second tranche of 521,250 shares set to close promptly following the purchaser's receipt of certain regulatory approvals.
  
  Enstar is a leading global organization that acquires and manages insurance and reinsurance companies in run-off and provides management, consulting and other services to the insurance and reinsurance industry.

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