Major Transactions This Week: DigitalBridge, BHP, Goldman Sachs, and Others
DigitalBridge Acquisition Talks: DigitalBridge's stock surged 33% following reports of Softbank's interest in acquiring the firm.
ITT and SPX FLOW Agreement: ITT has finalized a deal with Lone Star Funds to acquire SPX FLOW for $4.775 billion in cash and equity.
ASSA ABLOY Acquisition: ASSA ABLOY has acquired Sargent and Greenleaf, a U.S. manufacturer of high-security locking solutions.
Goldman Sachs and Innovator Capital Management: Goldman Sachs announced its agreement to acquire Innovator Capital Management for approximately $2 billion.
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ITT Increases Dividend for 14th Consecutive Year While Retaining 77% of Earnings
Dividend Safety and Growth: ITT maintains a low payout ratio of 22.9% and has a strong free cash flow coverage of 4.2 times its dividend obligations, allowing for consistent dividend growth at a 19% annual rate over the past five years.
Financial Stability: The company has a conservative debt to equity ratio of 0.41x and an impressive interest coverage ratio exceeding 22 times, indicating strong financial health and the ability to service its debt comfortably.
Dividend History: ITT has increased its dividend for over 14 consecutive years, demonstrating a commitment to returning value to shareholders, even during economic downturns like the 2020 pandemic.
Investment Consideration: While ITT offers a modest dividend yield of 0.76%, it is more suitable for investors focused on long-term dividend growth rather than immediate high yields.
ITT Announces Public Offering of 7 Million Shares at Set Price
Public Offering Details: ITT Inc. has priced its public offering of 7 million shares at $167 each, aiming for net proceeds of approximately $1.14 billion.
Use of Proceeds: The funds will primarily support the acquisition of SPX FLOW, Inc., with any unused proceeds allocated for general corporate purposes.
Underwriter Option: The company has granted underwriters a 30-day option to purchase an additional 1,050,000 shares at the same price of $167 per share.
Closing Date: The offering is expected to close on December 10.
