Carlyle Group in talks to acquire $7B stake in Medtronic unit: 5 big deal reports

By Davit Kirakosyan

Here is your Pro Recap of 5 head-turning deal dispatches you may have missed last week: deals at Chicos/Sycamore Partners, Blue Apron/Wonder, Carlyle in talks to acquire a majority stake in Medtronic units, Bain Capital considering a takeover of CCC Intelligent Solutions, and John Malone's Liberty Media considering merging its stake in SiriusXM with the rest of the radio company.

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Chicos FAS to be acquired by Sycamore Partners for $1 billion

Chico's FAS (NYSE:CHS) shares soared by over 63% on Thursday following the company's announcement of its agreement to be acquired by Sycamore Partners for a total of $1 billion ($7.60 per share in cash), as reported in real-time on InvestingPro.

This acquisition, led by the private equity firm, will result in Chicos transitioning into a private company.

The deal is expected to close by the end of the first calendar quarter of 2024. In addition, it includes a 30-day "go-shop" period that will expire at the end of the day on October 27. The "go-shop" period permits Chico's FAS to solicit and consider alternative acquisition proposals actively.

Marc Lore's Wonder acquires Blue Apron for $103 million

Blue Apron (NASDAQ:APRN) shares jumped more than 134% on Friday after the company announced its acquisition by Marc Lore's Wonder Group for $13.00 per share of Class A common stock, totaling around $103 million.

The merger aims to create a leading mealtime platform with enhanced choice, flexibility, and convenience, focusing on chef-curated meals with high-quality ingredients.

Blue Apron's operations will continue under the Blue Apron brand, with new synergies between consumer-facing apps and delivery logistics. The transaction is expected to close in Q4/23.

Carlyle in exclusive talks to acquire majority stake in Medtronic units for $7B

According to Reuters, citing sources familiar with the matter, Carlyle Group (NASDAQ:CG) is currently in exclusive discussions to acquire a majority stake in Medtronic's (NYSE:MDT) Patient Monitoring and Respiratory Intervention units at a valuation exceeding $7B.

Should an agreement be reached in the coming weeks, it would signify the conclusion of Medtronic's year-long evaluation of its patient monitoring and respiratory interventions businesses, which it had contemplated spinning off into a separate publicly traded entity.

These businesses that Medtronic intends to divest would be transferred to a new company majority-owned by Carlyle, with Medtronic retaining a stake of more than 35% in the new entity, as per the sources.

Two more potential deals

CCC Intelligent Solutions (NASDAQ:CCCS) saw a 7% increase in its stock price on Friday following a Bloomberg News report that private equity firm Bain Capital is considering a takeover of the company. Currently, CCC Intelligent Solutions, a provider of car insurance software, is controlled by Advent International. Bain Capital is not the sole interested party, as per the report. It suggests that there are other potential bidders showing interest in the company as well.

Billionaire John Malone's Liberty Media is considering merging its stake in Sirius XM (NASDAQ:SIRI) with the rest of the radio company to create a publicly listed entity. This move would involve spinning off Liberty Media Corp SiriusXM (NASDAQ:LSXMA), which holds an 83% stake in SiriusXM, and merging it with the radio company. After the merger, minority shareholders in SiriusXM would own about 16% of the new company, while Liberty Media would control the majority.

SiriusXM shares closed the week with around 12% gain, while Liberty SiriusXM Group surged more than 13%.

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