M&A · Industrials · Railroads, Line-Haul Operating
Canadian Pacific Railway Ltd to acquire Kansas City Southern
Announced Mar 21, 2021 · Closed Dec 14, 2021
Deal value$29.00BEV $29.00B
Premium23.0%To unaffected price
EV / Adj. EBITDA20.7x11.0x EV / Revenue
ConsiderationCash and stock$275.00 per share
Transaction
- Acquirer
- Canadian Pacific Railway Ltd (CP)
- Target
- Kansas City Southern (KSU)
- Buyer type
- Strategic
- Offer price per share
- $275.00
- Enterprise value
- $29.00B
- Status
- Closed Dec 14, 2021
Deal protections
- Break fee (target pays)
- —
- Reverse fee (buyer pays)
- —
- Go-shop
- —
- Financing
- Committed · JPMorgan, RBC Capital Markets, Morgan Stanley, BofA Securities
Advisors
- To the acquirer
- BMO Capital Markets, Goldman Sachs, Evercore
- To the target
- BofA Securities, Morgan Stanley
- Morgan Stanley fee
- $5.0M
Sector context · Industrials
- Comparable deals
- 17 in the prior 24 months
- Premium
- 23.0% vs. 24.0% sector median
- EV / Adj. EBITDA
- 20.7x vs. 9.7x sector median
- Break fee
- Sector median 2.4%
Timeline
- AnnouncedMar 21, 2021
- Proxy filedJul 7, 2021
- Definitive proxyJul 7, 2021
- Shareholder voteDec 10, 2021
- ClosedDec 14, 2021
Valuation · fairness opinions
Discounted cash flowMorgan Stanley$226.00$280.00
Trading comparablesMorgan Stanley$199.00$248.00
Trading comparablesMorgan Stanley$199.00$242.00
Premiums paidMorgan Stanley$151.00$221.00
Premiums paidMorgan Stanley$258.00$303.00
Trading comparablesBofA Securities$198.90$236.55
Trading comparablesBofA Securities$198.60$258.40
Precedent transactionsBofA Securities$160.10$203.75
Discounted cash flowBofA Securities$206.00$351.95
52-week trading rangeBofA Securities$100.54$224.16
Offer $275.00
Implied value per Kansas City Southern share by analysis, from Morgan Stanley and BofA Securities.