Big deals: Indiana's top 20 mergers and acquisitions in 2002. (Special Feature).
But as usual, the list of big deals included some silver linings. For one thing, the top two deals involved Indiana giants seeking to solidify their industry positions elsewhere in the country. Two of the state's banking companies continued to survive and grow in the competitive financial services industry. An Indiana steelmaker further boosted its standing in an otherwise dismal sector. And Indiana gained a public-company headquarters in one of the deals.
Heading the list, compiled by researchers at Mergerstat, is Anthem Inc.'s $4.2 billion acquisition of Virginia-based Trigon Healthcare Inc. The Blue Cross and Blue Shield affiliate on the East Coast brought 2.2 million customers to Indianapolis-based Anthem, the nation's fifth largest publicly traded health-benefits company. As the Blue Cross and Blue Shield licensee in nine states, Anthem now has more than 10 million members.
Second on the list is the hostile bid that Indianapolis-based Simon Property Group made for Taubman Centers Inc. of Michigan. Simon, a real-estate investment trust that is the nation's leading shopping center developer and operator, was rebuffed in friendly merger talks and subsequently made a bid for outstanding Taubman shares at a price higher than they had ever traded. At year-end and at press time for this issue it was unclear whether Simon's bid would succeed.
Berry Plastics Corp., a major Evansville-based producer of injection-molded and thermoformed plastics, changed hands in 2002. An investor group led by GS Capital Partners 2000--a private equity investment fund managed by Goldman Sachs & Co. of New York--acquired Berry Plastics for $837.5 million, a deal that was Indiana's third-biggest last year. Also part of the investor group were JPMorgan Partners and Berry's management team. The former owners were First Atlantic Capital, JPMorgan Partners and Aetna Life Insurance Co.
Indianapolis-based homebuilder Crossmann Communities Inc. became a wholly owned subsidiary of Atlanta-based Beazer Homes USA Inc. in 2002. Crossmann is a major regional builder, operating in Indiana and five other states. Beazer is one of the nation's top 10 single-family homebuilders, with operations in 14 states. The deal, valued by Mergerstat at $496.7 million, placed fourth on the list.
The No. 5 deal saw West Lafayette-headquartered Great Lakes Chemical Corp. selling a subsidiary called OSCA Inc. to BJ Services Co. of Houston. OSCA and its acquirer are involved in the oil and gas well services industry. The deal was valued at $416.2 million.
Other deals of note include the continued growth of two Indiana banking companies. Muncie-based First Merchants Corp. reached across state lines to bid for CNBC Bancshares, based in Worthington, Ohio. And Indianapolis-based First Indiana Corp. made an offer for MetroBanCorp, a Carmel-based banking company.
Steel Dynamics, based in Fort Wayne, is a rising and profitable star in a mostly dismal domestic steel industry. It was the successful bidder for the mothballed Qualitech Steel facility in Pittsboro last year. Steel Dynamics plans to continue its growth this year, moving to acquire and reopen a galvanizing facility in Jeffersonville.
Also in Jeffersonville is Danielson Holding Corp., which was a New York-based, diversified holding company that had focused mostly on insurance until it acquired Jeffersonville marine operator American Commercial Lines. The deal resulted in the move of publicly traded Danielson to Jeffersonville.
The past year was filled with dismal headlines involving Carmel-based insurer Conseco. Two of the year's top 20 deals involved the sale of the company's Conseco Variable Insurance unit to Inviva Inc. of New York after divesting a block of its life-insurance business to Protective Life of Alabama.
THE YEAR'S BIGGEST DEALS
1 Anthem - $4.2 billion
Acquirer: Anthem Inc., Indianapolis Health insurance
Target: Trigon Healthcare Inc., Richmond, Va. Health insurance
2 Simon * - $1.7 billion
Acquirer: Simon Property Group, Indianapolis Real-estate investment trust
Target: Taubman centers Inc., Bloomfield Hills, Mich. Shopping center development
3 Berry Plastics - $838 million
Acquirer: Investor group led by GS capital Partners 2000 (Goldman Sachs & Co.), New York Investment banking
Target: Berry Plastics corp., Evansville Injection-molded and thermoformed plastics
4 Crossmann Communities - $497 million
Acquirer: Beazer Homes USA Inc., Atlanta Homebuilder
Target: Crossmann communities Inc., Indianapolis Homebuilder
5 Great Lakes Chemical (subsidiary) - $416 million
Acquirer: BJ Services Co., Houston Pressure pumping and oilfield services
Target: OSCA Inc. subs. Great Lakes Chemical corp., West Lafayette Oil and gas well completion services and tools
6 Best Access Systems - $310 million
Acquirer: The Stanley Works, New Britain, Conn. Tools, hardware and doors
Target: Best Lock Corp. dba Best Access Systems, Indianapolis Security access-control systems
7 CTB International - $180 million
Acquirer: Berkshire Hathaway Inc., Omaha Holding company
Target: CTB International Corp., Milford Equipment for the poultry, hog, egg-production and grain industries
8 Conseco (subsidiary)--$90 million
Acquirer: Inviva Inc., NewYork Life insurance and annuity products
Target: Conseco Variable Insurance Co. subs. Conseco Inc., Carmel Insurance
9 Emmis (one radio station)--$88 million
Acquirer: Entercom Communications Corp., Bala Cynwyd, Penn. Communications
Target: KALC-FM (Denver), Emmis Communications Corp., Indianapolis Communications
10 Brill Media Co. (12 radio stations)--$62 million
Acquirer: Regent Communications Inc., Covington, Ky. Communications
Target: Twelve radio stations owned by Brill Media Co. LLC, Evansville Communications
11 First Merchants Corp. *--$58 million
Acquirer: First Merchants Corp., Muncie Banking company
Target: CNBC Bancorp, Worthington, Ohio Banking company
12 Conseco (portion of subsidiary)--$50 million
Acquirer: Protective Life Corp., Birmingham, Ala. Insurance
Target: Life-insurance business of Conseco Variable Insurance Co., Carmel Insurance
13 Virtual Financial Services Inc.--$48 million
Acquirer: Digital Insight Corp., Calabasas, Calif. Internet banking software
Target: Virtual Financial Services Inc., Indianapolis Internet banking software
14 Emmis (one radio station)--$48 million
Acquirer: Entravision Communications Corp., Santa Monica, Calif. Communications
Target: KXPK-FM (Denver), Emmis Communications Corp., Indianapolis Communications
15 Steel Dynamics/Qualitech Steel--$45 million
Acquirer: Steel Dynamics Inc., Fort Wayne Hot-and cold-rolled steel products
Target: Qualitech Steel, Pittsboro Special bar quality mini-mill
16 FortWayne Pools--$44 million
Acquirer: SCP Pool Corp., Covington, La. Distributor of swimming pool supplies and related products
Target: Fort Wayne Pools Inc., Fort Wayne Distributor and manufacturer of pool equipment, parts and supplies
17 Windrose Medical Properties Trust--$39 million
Acquirer: Windrose Medical Properties Trust, Indianapolis Real-estate investment trust
Target: Four outpatient treatment and diagnostic centers owned by Sierra Health Services Inc., Las Vegas Health-care delivery
18 Danielson Holding Corp./American Commercial Lines--$34 million
Acquirer: Danielson Holding Corp., Jeffersonville Holding company
Target: American Commercial Lines, Jeffersonville Marine transportation and services
19 First Indiana/Metro BanCorp *--$35 million
Acquirer: First Indiana Corp., Indianapolis Banking company
Target: MetroBanCorp, Carmel Banking company
20 Indiana Farm Bureau Insurance--$21 million
Acquirer: Indiana Farm Bureau Insurance Companies, Indianapolis Insurance
Target: Agway Insurance Co., DeWitt, N.Y Insurance
* Denotes deal announced in 2002 bur nor closed by year-end.
Sources: Houlihan Lokey Howard & Zukin's Mergerstat (mergerstet.com) and the individual companies listed.
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|Publication:||Indiana Business Magazine|
|Date:||Feb 1, 2003|
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