The PBR1000 September 2013 Recap

October 2, 2013 by

Handshake Animation 144794-20131002

By Larry C. Paxton

September was a busy month for The PBR1000. Here are the summaries with links to the the official press releases:

September 30, 2013:
Cooper Tire & Rubber Company(PBR517) stockholders today approved its merger with a wholly owned subsidiary of India’s Apollo Tyres Ltd(NSE: ApolloTYRE), will create the seventh largest tire company in the world. It is a $2.5 billion deal, $35.00/share, and is expected to close by 2013 year end. Click here for the Cooper press release.

September 26, 2013:
eBay Inc(PBR183) to acquire startup mobile payments system and Chicago based Braintree for $800 million, will operate under PayPal. Click here for the eBay press release.

September 26, 2013:
Air Products and Chemicals, Inc.(PBR263) announced that Chairman/CEO John McGlade will retire in 2014 and a new CEO search will commence immediately. Also, the board will be adding three new independent directors. Click here for the Air Products press release.

September 26, 2013:
The acquisition of Smithfield Foods(PBR199) by Chinese company Shuanghui International Holdings Limited is completed. Smithfield shareholders will receive<$34.00/share, and will be de-listed from the NYSE. Click here for the Smithfield press release.

September 25, 2013:
Stryker Corporation(PBR287) is acquiring MAKO Surgical Corporation, the pioneer in robotic assisted orthopedics surgery, for $30/share, $1.65 billion. Click here for the Stryker press release.

September 24, 2013:
Applied Materials, Inc(PBR284) and Tokyo Electron Limited(TSE: 8035) announced an agreement to merge to form a global company involved in semiconductor and display manufacturing technology. The transaction will be an all stock combination with the market capitalization valued at $29 billion. The deal is expected to close mid to second half of 2014. Click here for the Applied Materials announcement.

September 20, 2013:
David Dillon, Chairman/CEO of The Kroger Company(PBR26) to retire in January, 2014, will be succeeded by COO Rodney McMullen.

September 19, 2013:
Agilent Technologies, Inc(PBR350) announces that it will split into two publicly owned companies. Agilent will keep its name for its life sciences, diagnostics, and applied markets business, and a new company, to be named later, for its electronic measurements business. The split should be accomplished by the end of 2014. Click here for the Agilent press release.

September 18, 2013:
EnerSys(PBR786) has entered into an agreement to purchase privately held Purcell Systems, Inc., of Spokane, WA, for $115 million. Purcell has annual revenues of over $100 million. Click here for the EnerSys press release.

September 17, 2013:
Huntsman Corporation(PBR224) is acquiring the Performance Additives and Titanium Oxides businesses of Rockwood Holdings, Inc(PBR592) for $1.1 billion. The deal is expected to close during the first half of 2014. Click here for the Huntsman announcement.

September 16, 2013:
Kennametal Inc(PBR699) has entered into an agreement to acquire the the $340 million/year Tungsten Materials Business unit of Allegheny Technologies Inc.(PBR457) for $605 million. The transaction is expected to close before the end of 2013. Click here for the Kennametal press release.

September 16, 2013:
Packaging Corporation of America(PBR677) will be acquiring Boise Inc(PBR733) for $12.55/share, total deal value of $1.995 billion, inclusive of $714 million of Boise debt. The transaction is expected to close during the 4th quarter of 2013. Click here for the PCA agreement.

September 12, 2013:
Shareholders of computer maker and IT services Dell Inc(PBR45) voted to approve the privatization plan proposed by Chairman/CEO and founder Michael Dell and Silver Lake Partners. The deal is valued at $24.9 billion and is expected to close during the 3rd quarter FY2014. Click here for the Dell announcement.

September 10, 2013:
American Express(PBR85) announced today that it is selling its publishing unit to the Time, Inc. division of Time Warner(PBR95). No terms were announced, the deal is expected to close by year end. Click here for the American Express press release.

September 10, 2013:
Cisco Systems, Inc.(PBR60) announced that it has entered into an agreement to purchase for $415 million the startup WHIPTAIL, a developer of high performance, scalable solid state memory systems. Click here for the Cisco notice.

September 9, 2013:
Molex Inc(PBR594) has agreed to be acquired by the Koch brothers’ private company Koch Industries for $38.50/share, $7.2 billion deal, expected to close by the end of 2013. Click here for the Molex press release.

September 6, 2013:
American Tower Corporation(PBR674) announced it is acquiring MIP Tower Holdings LLC, a private real estate investment trust, and parent of Global Tower Partners, a major owner/operator of communications towers. The deal is valued at $4.8 billion($3.3 billion in cash, $1.5 billion in debt assumption) and is expected to close by the end of 2013. Click here for the American Tower press release.

September 3, 2013:
Microsoft Corporation(PBR34) announced today that it has entered into an agreement to acquire the devices and services business, license patents, and license and use the mapping services of Finland based Nokia Corporation. The deal is valued at $7.2 billion, with the transaction expected to close during the 1st quarter of 2014. Click here for the Microsoft announcement.

September 2, 2013:
Verizon Communications Inc(PBR16) has entered into an agreement with Vodafone Group Plc(London, NASDAQ: VOD) to purchase Vodafone’s US group with the principal asset of 45 percent of Verizon Wireless for $130 billion, consisting primarily of cash and stock. The transaction is expected to close during the 1st quarter of 2014. Click here for the Verizon press release.

September 1, 2013:
Effective today Mario Longhi moves from President/COO to CEO of United States Steel Corporation(PBR136). John Surma moves from Chairman/CEO to Executive Chairman, will retire at the end of the year.

Larry C. Paxton is the President/CEO of Pax Business Resources. PBRMarketTools is the marketing research division. The PBR1000 is a compilation of key demographic, industry, financial, and personnel data, and news summaries, on 1000 of the largest US publicly traded companies. This list is updated four times a year and published in Microsoft Excel format as The PBR1000 Quarterly Progress Reports.

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CEO Longevity in The PBR1000 – September 2013

September 25, 2013 by

Leader Pic 70520-20130920

By Larry C. Paxton

Knowing the characteristics of a company’s leadership can be key to having a higher probability of success when you desire to consult, sell/market to/for, or have an interest in a job at a large company. Here are some observations on CEOs based on a compilation by the PBRMarketTools.com team based on The PBR1000, which currently contains key demographic, financial, industry, and people data on 1002 of the largest publicly traded US corporations. This article will focus on longevity of CEOs in these companies. Additional articles about CEOs will follow in the coming months.

By year in descending order here are the current counts of CEOs who have been appointed:

  • 2013(through August 31): 76 CEOs appointed
  • 2012: 97
  • 2011: 93
  • 2010: 85
  • 2009: 69(420 total over 4 2/3 years, 90 CEO appointments average/year)
  • 2004-2008: 301(5 years, 60 CEO appointments average/year)
  • Before 2004: 281

The longest serving CEO in The PBR1000 is Leslie Wexner, Chairman/CEO and Founder of L Brands (PBR239), serving since 1963.

The median year for the 1002 CEOs is 2007. But keep in mind that 485 CEOs, just under half, took on that position between 2008 and August, 2013.  By the end of 2013 the median year should be 2008.

In terms of revenues in the top 100 companies, basically those who did over $27 billion in FY2012, half of the CEOs came on board between 2009 and the end of August this year. CEOs in companies that did around $1.8 billion to $27 billion had a median start date in 2007, and CEOs in companies that did $1 billion to around $1.8 billion had the longest median appointment year of 2005.

CEOs is some key industries have interesting longevities. Here are some examples:

  • SIC 1520-1540, basically general building contractors, 7 companies, median CEO appointment year: 2003
  • SIC 2000, food and kindred products, 7 companies, 2012
  • SIC 2911, petroleum refining, 13 companies, 2010
  • SIC 3310-3357, steel manufacturing, 17 companies, 2009
  • SIC 3411-3490, basically metal fabrication, 11 companies, 2004
  • SIC 3711-3790, transportation manufacturing, 37 companies, 2009
  • SIC 4512-4522, air transportation, 12 companies, 2004
  • SIC 6200-6282, investment services, 24 companies, 2005
  • SIC 6798, real estate investment trusts, 19 companies, 2002
  • SIC 7011, hotels/motels, 10 companies, 2005
  • Sic 7370-7374, software programming services(Google, Facebook, …), 28 companies, 2008
  • SIC 8050-8090, hospitals and health care related services, 17 companies, 2004

The top 6 states, accounting for 480 of the 1002 The PBR1000 companies, had the following average median CEO appointment year(State, The PBR1000 company count, median CEO appointment year):

  • California, 108, 2007
  • Texas, 102, 2007
  • New York, 98, 2006
  • Illinois, 67, 2008
  • Ohio, 55, 2007
  • Pennsylvania, 50, 2010

Bottom line, by the end of this year, around 50% of CEOs in The PBR1000 will have been in their job for 6 years or less, meaning, of course, the other 50% for 7 years or more.

How does that compare to the average American worker? According to the Employee Benefit Research Institute the median length of time in a job for an American worker in 2012 was 5.4 years, which is slightly more than the 5 years median in 1983.

I’ll let you draw your own conclusions on all this and we will have more reports about CEOs coming out on a regular basis.

More details are available in The PBR1000 CEO Longevity Report which is a series of Microsoft EXCEL worksheets that includes each company’s CEO name, other titles they hold in the company, year they became CEO, and a hotlink to a brief biography about them. Just go to www.PBRMarketTools.com and follow the link to the Order page.

Larry Paxton is the President/CEO and founder of Pax Business Resources, LLC(PBR). www.PBRMarketTools.com is the marketing research arm of the company. In the past he has worked for a couple of The PBR1000 companies and provided a variety of products and services to many of them over the years. PBR is in its 4th year. Larry looks forward to being in that median group of CEOs with 7 years of service or more on the job.

Filed Under: Leadership Tagged With: , , , , ,

The PBR1000 Breaking News Review: July/August, 2013

September 5, 2013 by

Corporate Hand Shake ID-100182354

(Image courtesy of FreeDigitalPhotos.net)

By Larry C. Paxton

The summer months of July and August were busy ones with lots of deals affecting The PBR1000, some of them with some significant controversy. Unless specified otherwise, the ranking(in parentheses after the company name) is based on The PBR1000 3rd Quarter Progress Report. Here’s the recap, sorted by the most recent news date:

August 25, 2013: Amgen Inc(PBR151) to acquire Onyx Pharmaceuticals, Inc(NASDAQ: ONXX, $362 million in revenues in 2012) for $125/share, $10.4 billion all cash deal, expecting to close during early 4th quarter 2013. Will give Amgen some additional cancer medications and research.

August 23, 2013: Steve Ballmer, CEO since 2000 for Microsoft Corporation(PBR34), announced today that he will be retiring sometime within the next 12 months.

August 20, 2013: After filing for protection in January, 2012, today Eastman Kodak Company(PBR527) received approval from the US Bankruptcy Court of its Chapter 11 Reorganization Plan. According to CEO Antonio Perez the goal is to emerge from bankruptcy on September 3, 2013, and focus on being a technology leader serving large and growing commercial imaging markets such as commercial printing, packaging, functional printing, and professional services.

August 7, 2013: AOL Inc(PBR807) to acquire Adap.tv, Inc., a leading global, programmatic video advertising platform for the world’s largest brands, agencies, and publishers. Deal valued at $405 million, $322 million in cash, $83 million in AOL common stock. Deal expected to close during 3rd quarter 2013.

August 5, 2013: The Washington Post Company(PBR542) announced today that Jeff Bezos, founder of Amazon.com, Inc.(PBR47), in a separate personal transaction valued at $250 million, will be acquiring the company. The transaction includes the main paper and some other smaller publications, but not all entities of the company. It is expected that the deal will be completed before the end of 2013.

August 2, 2013: The New York Times Company(PBR870) agreed to sell off its New England Media Group, which includes The Boston Globe and related holdings, to John W. Henry, sports entrepreneur and principal owner of the Boston Red Sox, for $70 million cash. The deal is expected to close in 30-60 days.

July 30, 2013: KKR & Co, LP(PBR258) completes acquisition of Gardner Denver, Inc(PBR773) for $3.9 billion, plus assumption of debt.

July 30, 2013: Community Health Systems(PBR174) to buy Health Management Associates(PBR354) for $13.78/share, deal valued at $7.6 billion, which includes HMA debt of $3.7 billion. Deal expected to close by end of 1st quarter 2014.

July 29, 2013: US drug maker Perrigo(PBR620) to buy Ireland based biotech firm Elan(NYSE: ELN) in $8.4 billion deal.

July 29, 2013: Canadian retailer giant Hudson Bay(parent of Lord & Taylor) to buy Saks, Inc(PBR646) for $2.6 billion.

July 28, 2013: Omnicom Group Inc(PBR182) and Publicis Groupe SA(Paris, France) announce definitive agreement to merge and form Publicis Omnicom Group, a holding company based in the Netherlands with head offices in Paris and New York City. It will be the largest communications, advertising, marketing and digital services company in the world. Transaction valued at $35 billion, expected to close during 4th quarter 2013 or 1st quarter 2014.

July 24, 2013: HanesBrands Inc(PBR489) to buy Maidenform Brands, Inc(NYSE: MFB, $600MM revenues in 2012) for $23.50/share, $575 million total deal value.

July 12, 2013: AT&T(PBR12) reaches agreement to acquire LEAP Wireless(PBR625) for $15/share, $1.2 billion, expected to close in 6-9 months.

July 10, 2013: Japan’s SoftBank Corp completes its $21.6 billion acquisition of Sprint Nextel Corp(PBR83-2Q13), renames it to Sprint Corporation(PBR82), will continue trading under stock symbol S.

July 9, 2013: Kroger Co(PBR26) announced that it is acquiring the upper end 212 store chain Harris Teeter Supermarkets(PBR487) for $49.38/share, $2.44 billion transaction value, to close during 2013.

July 2, 2013: Coinstar, Inc.(PBR807-2Q13), changes name to Outerwall, Inc.(PBR804), still trading on NASDAQ with new symbol OUTR, new website, continues to provide Coinstar, ATM, and RedBox services.

Larry Paxton is the President/CEO of Pax Business Resources, LLC. The marketing research division, www.PBRMarketTools.com, produces the popular The PBR1000 Quarterly Progress Report.

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