Merger Monday Moves the Market

NEW YORK ( TheStreet) -- Gerber Scientific's ( GRB) announcement to merge with Vector Capital , though small in size, is just one of several that hit Wall Street on Monday.

Allied World Assurance ( AWH), Timberland ( TBL), Wendy's/Arby's ( WEN) and Honeywell ( HON) were among the major players to grab the spotlight.

Allied World Assurance agreed to merge with Transatlantic Holdings ( TRH). VF Corp. ( VFC) will buy Timberland. Wendy's/Arby's Group decided to sell Arby's Restaurant Group, and Honeywell will acquire EMS Technologies ( ELMG).

Allied World will merge with Transatlantic to create TransAllied Group Holdings.

Allied World Assurance and Transatlantic Holdings agreed to merge in a $3.2 billion deal that will create a specialty insurance company with total invested assets of $21 billion.

Transatlantic shareholders will have about 58% of the combined company, which will be called TransAllied Group Holdings, and Allied World shareholders will get about 42%.

Transatlantic will shift its headquarters to Switzerland because it's more favorable from a tax perspective.

Scott Carmilani, Allied World's chairman and CEO, will be president and CEO of the combined company, while Robert Orlich, CEO of Transatlantic, will retire.

Allied World shares were at $56.74, down 2.3%, and Transatlantic shares were at $49.25, up 11.9% on Monday.

VF Corp. said Timberland will perfectly complement its North Face and Smartwool brands.

VF Corp. announced its agreement to buy the popular footwear brand Timberland for $43 a share.

The deal values Timberland at $2 billion and is expected to add about $700 million to VF's 2011 revenue, the company said Monday.

Timberland will become part of VF's Outdoor & Action Sports coalition.

"This acquisition will continue the transformation of VF's portfolio, propelling VF's Outdoor & Action Sports businesses to 50% of total revenues," said VG Corp.'s Chairman and CEO Eric Wiseman.

VF shares rose 10.6% to $101.49. Timberland shares were at $42.76, up 42.6% on Monday.

Wendy's/Arby's Group is selling the Arby's restaurant business to Roark Capital Group.

Wendy's/Arby's Group announced a definitive agreement to sell Arby's to Roark Capital Group for $430 million on Monday.


Wendy's/Arby's will retain an 18.5% ownership interest in the Arby's business.

The transaction will provide opportunities for Wendy's restaurants that include "revitalization of our core menu, expanding breakfast, modernizing our facilities, building new restaurants in the United States and pursuing global expansion," said Roland Smith, president and CEO of Wendy's/Arby's.

The deal is expected to close in the third quarter. Wendy's/Arby's shares were at $4.72, up 4.4% on Monday.

Gerber Scientific will merge with Vector Capital to boost its portfolio.

Gerber Scientific announced a definitive merger agreement with Vector Capital that will give shareholders $11 a share in cash, which amounts to $281.8 million in total.

The cash consideration represents a 35% premium to the company's closing share price on Friday.

"Vector has a proven track record as a value-added partner to its portfolio companies, and we believe that their technology expertise and financial resources will enable us to continue to provide superior products and service to our customers worldwide, while growing our global footprint," said Donald P. Aiken, Gerber Scientific's chairman.

The graphic design company's shares were at $10.93, up 34.6% on Monday.

Honeywell will acquire EMS Technologies to improve key growth in its aerospace business.

Honeywell agreed to acquire EMS Technologies for about $491 million, or $33 a share in cash.

The acquisition will improve Honeywell's position in rugged mobile computing technologies and satellite communications.

"The acquisition brings engineering expertise, differentiated technologies, global reach, and profitable adjacent segments that build upon our great positions in good industries and enhance our growth profile," said Dave Cote, Honeywell's chairman and CEO.

Honeywell shares were trading at $55.94, up 0.7%, and EMS shares were at $32.80, up 32.3% on Monday.

-- Written by Joe Deaux in New York.

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