M&A · Energy · Gas & Other Services Combined
BP Products North America Inc. to acquire Archaea Energy Inc.
Announced Oct 17, 2022 · Closed Dec 28, 2022
Deal value$4.10BEV $4.10B
Premium54.0%To unaffected price
EV / Adj. EBITDA—20.1x EV / Revenue
ConsiderationAll cash$26.00 per share
Transaction
- Acquirer
- BP Products North America Inc.
- Target
- Archaea Energy Inc.
- Buyer type
- Strategic
- Offer price per share
- $26.00
- Enterprise value
- $4.10B
- Status
- Closed Dec 28, 2022
Deal protections
- Break fee (target pays)
- $115M · 2.8%
- Reverse fee (buyer pays)
- $327M · 8.0%
- Go-shop
- No-shop
- Financing
- No financing condition
Advisors
- To the acquirer
- Not disclosed
- To the target
- BofA Securities
- BofA Securities fee
- $29.0M
Sector context · Energy
- Comparable deals
- 40 in the prior 24 months
- Premium
- 54.0% vs. 27.3% sector median
- EV / Adj. EBITDA
- Sector median 12.8x
- Break fee
- 2.8% vs. 2.5% sector median
Timeline
- AnnouncedOct 17, 2022
- Proxy filedNov 2, 2022
- Definitive proxyNov 14, 2022
- Shareholder voteDec 13, 2022
- ClosedDec 28, 2022
Valuation · fairness opinions
Trading comparables$20.45$34.51
Trading comparables$17.86$34.35
Discounted cash flow$20.66$39.43
Discounted cash flow$13.12$23.75
Analyst price targets$25.00$35.00
Offer $26.00
Implied value per Archaea Energy Inc. share by analysis, from BofA Securities · DCF discount rate 10.75%–13.25%.