8 Big Acquirers of 2011

NEW YORK ( TheStreet) -- 2011 saw renewed corporate merger and acquisition activity across various industry sectors. Investors might want to take a look at the companies resulting from these deals, because the merged companies may wind up with more efficiency or industry heft.

The following stocks either completed or announced acquisitions during the past year.

They are listed in descending order of total deal value.

1. Express Scripts ( ESRX) is one of the largest pharmacy benefit management companies in North America. It provides network-pharmacy claims processing, home delivery services, specialty benefit management, benefit-design consultation and other services.

In July, the company announced it would acquire all of Medco Health Solutions' ( MHS) shares in a cash and stock deal.

Under the agreement, Medco's shareholders will receive $28.80 in cash and 0.81 shares of Express Scripts for each Medco share they own. Based on recent stock prices, the purchase price is valued at $25.2 billion, a premium to Medco's recent market capitalization of $21.6 billion.

The deal is expected to generate synergies of $1 billion once fully integrated, representing 1% of the combined costs. The transaction is expected to be slightly accretive to EPS in the first year after closing and moderately accretive when fully integrated. The deal is likely to close during the first half of 2012, subject to regulatory approval.

Of the 26 analysts covering Express Scripts, 88% rate the stock a buy. Analysts polled by Bloomberg on average expect the stock to gain 26.5% to $56.79 in the coming 12 months.

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2. Sanofi ( SNY) is a diversified pharmaceutical company.

In April, Sanofi completed the acquisition of Genzyme Corp., a biotechnology company, for a total consideration of $19.6 billion, or $74.00 per share, in cash plus contingent value right (CVR), according to data compiled by Bloomberg.

The acquisition is expected to be accretive to Sanofi's business net earnings per share in the first year following closing, and accretive to business net earnings per share in the range of 98 cents to $1.30 by 2013. The deal will expand SNY's footprint in biotechnology and accelerate revenue growth.

For the third quarter, total sales were reported at $11.4 billion, up 4.58% compared to the 2010 quarter. Genzyme's sales were $1.0 billion, rising 6.9% from the corresponding quarter of 2010, or 8.7% of total sales.

Of the five analysts covering the stock, three rate it a buy and two rate a hold. Analysts polled by Bloomberg on average expect the stock to gain an average of 21% to $43.72 in the coming 12 months.

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3. Ensco ( ESV) is a global provider of offshore drilling services to the oil industry. It has a fleet of ultra-deepwater semisubmersible and premium jack-up drilling rigs.

In February, Ensco announced it would acquire Pride International, an operator of a fleet of 26 mobile offshore drilling units consisting primarily of floating rigs, for a total consideration of $8.4 billion in a stock and cash deal, according to Bloomberg. Under the agreement, Pride's shareholders were to receive 0.4778 newly issued Ensco shares plus $15.60 in cash for each Pride common share they owned. The deal closed at the end of May.

When the offer was announced, it represented a 21% premium to where Pride's shares traded just before the announcement.

Pride's revenue and net income from the merger date were $440.1 million and $62.6 million, respectively, for the three-month period ended Sep. 30, 2011 and $591.3 million and $86.9 million, respectively, for the nine-month period ended Sep. 2011.

Of the 38 analysts covering Ensco, 76% rate it a buy and 21% rate it a hold. On average, analysts polled by Bloomberg expect the stock gaining 29.3% to $63.07 in the coming 12 months.

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4. Alpha Natural Resources ( ANR) is a supplier and exporter of metallurgical coal used in steel making and thermal coal to electric utilities and manufacturing industries in the U.S. It has coal production capacity of greater than 90 million tons a year.

In January, Alpha Natural announced it would acquire Massey Energy, a coal producer with operations in Virginia, West Virginia, and Kentucky for a total consideration of $8.2 billion in a stock and cash deal, according to data compiled by Bloomberg. Under the agreement, MEE stockholders were to receive 1.025 shares of Alpha common stock and $10.00 in cash for each share of Massey common stock they owned.

At the time, the offer represented a 21% premium to Massey's share price.

Massey's revenue from the merger date included in the condensed consolidated statements of income was $811.4 million and $1.14 billion for the three-month period and nine-month period ended September 2011, respectively.

Of the 27 analysts covering the stock, 70% rate Alpha a buy. On average, analysts polled by Bloomberg expect the stock to gain an average of 74.5% to $36.17 in the coming 12 months.

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5. Ecolab ( ECL) markets cleaning and sanitizing products and pest-elimination services for hotels, food service and health care industries.

In July, ECL announced it would acquire Nalco Holding Company, a water treatment and process improvement company, for a total consideration of $8.04 billion in a stock and cash deal, according to Bloomberg. The deal closed at the end of November.

Ecolab said the deal identified cost synergies of $150 million and attractive revenue opportunities. The transaction is expected to be accretive to EPS in 2012 and subsequent years, leading to double-digit growth rates for the company, Ecolab said.

Of the 18 analysts covering Ecolab, 67% rate the stock a buy. On average, analysts polled by Bloomberg expect the stock to gain an average of 8.8% to $61.92 in the coming 12 months.

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6. Danaher Corp. ( DHR) is a science and technology company.

In August, Danaher completed the acquisition of Beckman Coulter, which makes products used in biomedical testing.

The deal was a cash tender offer for all of Beckman Coulter's outstanding shares of common stock at a purchase price of $83.50 per share for a total consideration of $6.9 billion, including debt assumed and net of cash acquired.

Of the 24 analysts covering Danaher, 75% rate it a buy. On average, analysts polled by Bloomberg expect the stock to gain 17.4% to $55.95 in the coming 12 months.

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7. Texas Instruments ( TXN) designs and manufactures semiconductors.

In September, TI completed its acquisition of National Semiconductor for a total consideration of $6.4 billion in cash, according to Bloomberg.

Subsequent to the acquisition, Texas consolidated results into its analog segment under the name Silicon Valley Analog. For the third quarter of 2011, Silicon Valley Analog's revenue stood at $18 million, while operating profit was $2 million. Inventory for the quarter increased by $2.15 million associated with the acquisition.

Of the 43 analysts covering Texas Instruments, 56% rate it a buy. On average, analysts polled by Bloomberg expect the stock to gain an average of 8.7% to $32.20 in the coming 12 months

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8. Teva Pharmaceutical Industries ( TEVA) makes and sells generic drugs.

In October, Teva completed the acquisition of Cephalon for a total consideration of $6.15 billion in cash, as per data compiled by Bloomberg. Pursuant to the acquisition, each share of Cephalon common stock has been converted into the right to receive $81.50 in cash.

Teva foresees realizing annual cost synergies of at least $500 million within three years of the transaction's closing.

Non-GAAP diluted earnings per share for full year 2011 are estimated in the range of $4.92 to $5.02, including non-GAAP diluted earnings per share contribution of approximately 15 cents from the consolidation of the Cephalon acquisition. The acquisition is seen supporting Teva's long-term strategy of achieving more than $9 billion revenue in 2015, as compared to $4.6 billion in 2010.

Of the 36 analysts covering the stock, 75% rate it a buy. On average, analysts polled by Bloomberg expect the stock to gain 29% to $53.77 in the coming 12 months.

>>To see these stocks in action, visit the 8 Big Acquirers of 2011 portfolio on Stockpickr.