St. Louis Corporate Mergers, Acquisitions & Relocations

DogtownBnR · PostApr 09, 2015#4012015-04-09T18:12+00:00

http://www.stltoday.com/business/local/ ... d_headline

Is there any chance a Walgreens/Express Scripts deal happens? If so, how would it affect STL? I am not familiar enough with this industry, to answer these questions.

moorlander · PostApr 09, 2015#4022015-04-09T18:41+00:00

For reference....
Fortune 100 list
Express Scripts is #20
Walgreens is #37

arch city · PostApr 10, 2015#4032015-04-10T19:19+00:00

While a merger between Express Scripts and Walgreens could happen, I personally think Walgreens would likely go after Rite-Aid stores/pharmacies - which have a major presence across the country.

Although Walgreens recently announced plans to close 200-stores, a Rite-Aid purchase (4600 stores) would put Walgreens in more states. They could literally go coast-to-coast. Currently, Walgreens is in only 44-states.

Plus, Rite-Aid just bought Cleveland-area based, EnvisionRX (a PBM) for $2-billion. That would give Walgreens a pharmacy benefit manager (PBM), which Walgreens could grow by gobbling up other smaller PBMs along the way without much regulator scrutiny.

Plus, Walgreens would have to pay a PREMIUM for Express Scripts. Express Scripts' current annual revenue bests Walgreen's by nearly $30-billion. Rite Aid's current stock price is $8.26 vs. $88.77 for Express Scripts. Walgreens stock price has dropped to $91.42. ESRX market cap is 64.64B vs. 73.14B for WBA (Walgreens). Rite-Aid's market cap is 8.45B. To me, it seems, Walgreen's would get a bigger bang for its buck by going after Rite-Aid.

Keep in mind too that just because Walgreens is open for "a deal", it doesn't necessarily mean Walgreens will do the acquisition. Medco came to Express Scripts - even though Medco was larger company. ESRX could go after Walgreens, but I doubt it.

Additionally, the Feds would scrutinize the hell out of an ESRX (Express Scripts) and WBA (Walgreens) merger.

Anyway, I said just over two years ago on Page 16 that Express Scripts needed to be going after Rite-Aid. They still could go after Rite-Aid, but spin-off or sell EnvisionRX after the acquisition. Also, Express Scripts should look into buying Lab Corp or Qwest Diagnostics. Or it could cobble together medical device companies. It's time for ESRX to act like a major health care company - not just a PBM.

Last, if a full merger between ESRX and WBA occurs - St. Louis is screwed - regardless of who buys who. ESRX management would likely be downsized and the rest relocated to Chicago.

It's likely the technology, distribution and many back-office functions would stay in St. Louis.

dredger · PostApr 15, 2015#4042015-04-15T23:55+00:00

Looks like Bunge, NA found an interesting partner in a controlling interest of a Canadian company. I believe Geoff on a Nextstl post noted at one point that they might be looking for a new Corporate HQ. Still of the believe that they need to have their executive conference room overlooking the Big Muddy. Can be right next to a new Drury tower.

http://www.stltoday.com/business/local/ ... 8235b.html

roger wyoming II · PostApr 17, 2015#4052015-04-17T15:29+00:00

^ That would be great to get them downtown... anywhere would do but I agree something in the Landing/Riverfront would be awesome.

Also, not an corporate acquisition, but I think the name change of Brown Shoe to Caleres is kind of weird.

framer · PostApr 17, 2015#4062015-04-17T20:34+00:00

Caleres sounds like a low-calorie car or something. I'm sure they spent millions to come up with it, too.

jcity · PostApr 21, 2015#4072015-04-21T00:01+00:00

http://en.m.wikipedia.org/wiki/Cadillac_Cimarron
It reminds me of this.

urban_dilettante · PostApr 21, 2015#4082015-04-21T02:09+00:00

framer wrote:Caleres sounds like a low-calorie car or something. I'm sure they spent millions to come up with it, too.

yep. horrible horrible name change.

dredger · PostMay 08, 2015#4092015-05-08T05:25+00:00

This would be a biggie. Let the speculation begin as to whether Chesterfield is Monsanto's future as Geoff expresses in his posting on NextSTL or the makings of a huge London based seed conglomerate. Would St Louis be left as a corporate R&D location and NA sales office while the prestige, the execs, marketing and tax savings get funneled overseas? Or as the Brazilians did, send everyone to New York as their new world HQ. Would you have a big enough corporate entity and sponsor to finally bring back a London flight?

Monsanto said to make offer for Syngenta, valuing rival at $45B

http://www.stltoday.com/business/local/ ... 0eb3b.html

LONDON • Monsanto Co., the world’s largest seed company, has made an offer for Syngenta, valuing its Swiss rival at about $45 billion, Bloomberg News reported late Thursday, citing people with knowledge of the matter.

wabash · PostMay 08, 2015#4102015-05-08T06:32+00:00

London seems unlikely given the E.U.'s stricter anti-trust laws, heightened scrutiny of GMOs, and greater likelihood of popular protests and media attention. Better to stick with St. Louis or Basel.

imperialmog · PostMay 08, 2015#4112015-05-08T12:21+00:00

wabash wrote:London seems unlikely given the E.U.'s stricter anti-trust laws, heightened scrutiny of GMOs, and greater likelihood of popular protests and media attention. Better to stick with St. Louis or Basel.

Also the feds are clamping down on the inversions issue as well. And there is the fact that the UK in relation to the EU is now becoming cloudy due to elections there. The article also seemed to state the anti-trust issues might be more a problem here than in Europe due to market reasons.

moorlander · PostMay 08, 2015#4122015-05-08T14:02+00:00

Bid rejected.

Would this purchase be a positive for St Louis or not?

dredger · PostMay 08, 2015#4132015-05-08T17:15+00:00

^ I think this deal would be a plus even if the top tier executives want to be in a top tier international city for the sake of their ego and international air travel, whether it be NY or London. I think being next to an airport hub is overblown considering that private jets make much more sense at that executive level then sharing a seat next to someone like me who happens to be there because of an upgrade. I do understand a large international company needing the resources of lawyers and bankers which hurts St. Louis.

If DuPont or Dow or one of the huge chemical companies go after Monsanto. I think that would be bad as they would strip down to R&D only in the region, strip admin for the cost saving promised to the financers, and dump the CC campus to the first bidder. I think Monsanto is much more inclined to get value out of CC campus as well as see Dansforth Plant Science center flourish.

arch city · PostMay 08, 2015#4142015-05-08T19:14+00:00

Personally, I see this being good for St. Louis if it goes through.

Unlike the A-B debacle when InBev took it over, Monsanto is the suitor here. While the corporate address could change, I doubt VERY seriously Monsanto would gut St. Louis. St. Louis might actually get more business and research investment, I think.

I also don't think the corporate HQs would shift to NYC, London or Chicago. Those cities don't have the plant science expertise that exists in St. Louis. It would be foolish, I think, for the combined firm to locate a global plant science/seed company HQs in one of those cities when its assets would be clearly in St. Louis and Basel.

St. Louis is home to the world's largest concentration of plant scientists, and more than 750 plant and medical science organizations are based in St. Louis.

And with St. Louis being one of the world's leading cities in plant science research with companies like Bunge, Spectrum Brands, MoBOT, Donald Danforth Plant Science Center (the world's leading private plant science research institution), KWS SAAT, AG, the global HQs of Dupont's Solae & Soy Polymers Research Division, Pfizer's therapeutic biologics (which relies heavily on plant science research) - I can only see the possibility of a dual HQs or World HQs in Basel with the North American HQ's in St. Louis OR visa versa.

dredger · PostMay 08, 2015#4152015-05-08T19:20+00:00

^ Going to get off the topic but does anyone know If Pfizer still has a presence at Monsanto's Chesterfield campus? assume so, any rumblings on where they are going to move to. I thought that was the plan when Pfizer sold the campus to Monsanto.

Personally, I think Pfizer being an anchor tenant for next round of Wexford/CORTEX would be great but have no idea what is left of Pfizer's presence in St. Louis after they had a major round of R&D/office consolidation a few years back if not mistaken.

moorlander · PostMay 08, 2015#4162015-05-08T19:32+00:00

Per the NextStl article:
"In 2009 Pfizer cut 600 area jobs and then sold the campus back to Monsanto for $430 million in 2010. The pharmaceutical giant still occupies space and conducts research at the Monsanto campus."

arch city · PostMay 08, 2015#4172015-05-08T22:09+00:00

The current CEO of Syngenta is an American who was educated at Harvard and Kalamazoo College.

jstriebel · PostMay 09, 2015#4182015-05-09T01:39+00:00

Just read that some speculate Monsanto might move their tax headquarters to Basel for the lower taxes. It's interesting that the taxes are so much lower there, which is all that would matter in that scenario, when Switzerland itself is extremely expensive to live in.

It would suck to lose the world HQs, but I can't imagine any scenario in which this wouldn't actually be a good thing for St. Louis.

wabash · PostMay 09, 2015#4192015-05-09T02:19+00:00

^Yeah. If it's just a tax inversion to Basel it may not make much of a difference. For example, Mallinckrodt is "headquartered" in Dublin, but run out of Hazelwood for all practical purposes.

arch city · PostMay 15, 2015#4202015-05-15T19:43+00:00

St. Louis-based Post Holdings, Inc. is consolidating its Post Foods (currently based in New Jersey) and its newly-acquired MOM Brands (based in Lakeville, MN) into one division based in suburban Minneapolis.

The new division will be called Post Consumer Brands.

Post Holdings, Inc. corporate offices will remain in St. Louis.

Source

robertn42 · PostMay 16, 2015#4212015-05-16T15:49+00:00

arch city wrote:St. Louis-based Post Holdings, Inc. is consolidating its Post Foods (currently based in New Jersey) and its newly-acquired MOM Brands (based in Lakeville, MN) into one division based in suburban Minneapolis.

The new division will be called Post Consumer Brands.

Post Holdings, Inc. corporate offices will remain in St. Louis.

Source

Now if we could just get them to move from Brentwood to downtown. Their HQ there is underwhelming at best.

arch city · PostMay 16, 2015#4222015-05-16T20:58+00:00

^Agreed.

There's a building downtown - somewhere - waiting for the "Post" signature sign to be attached.

moorlander · PostMay 20, 2015#4232015-05-20T13:13+00:00

Kent sells Suddenlink for billions

"European telecom company Altice SA said Wednesday it agreed to buy a controlling interest in St. Louis-based Suddenlink Communications, Jerry Kent’s cable and broadband company, in a deal worth $9.1 billion...."

Sounds like Kent will roll this over into other purchases

"...For my part, after the acquisition is completed, I'll continue to focus on other businesses, through my investment and management company, Cequel III. Throughout my entrepreneurial career, I've been excited and energized by seeking new opportunities and companies, and I look forward to the next chapter."

READ MORE
http://www.bizjournals.com/stlouis/morn ... lions.html

robertn42 · PostMay 20, 2015#4242015-05-20T14:41+00:00

One of my good friends helped finance this deal. Kent is already looking to use the money to expand Tierpoint and as stated above a variety of other investments through Cequel III. Kent is a force to be reckoned with globally, not just in St Louis. Hopefully he continues to grow his empire here.

pat · PostMay 20, 2015#4252015-05-20T14:46+00:00

Maybe he's interested in buying a football for soccer franchise?

St. Louis Corporate Mergers, Acquisitions & Relocations

Choose Display Mode