acquisition

GANNETT CO., INC. $18 (New York symbol GCI; Conservative Growth Portfolio, Consumer sector: Shares outstanding: 116.5 million; Market cap: $2.1 billion; Price-to-sales ratio: 0.7; Dividend yield: 3.6%; TSINetwork Rating: Average; www.gannett.com) publishes daily newspapers in 107 U.S. markets, including its flagship newspaper, USAToday. It also has 19 papers in the U.K., and over 200 magazines and other publications. The company has offered to buy Tribune Publishing Co. (New York symbol TPUB). This firm owns 11 daily papers, including the Chicago Tribune and the Los Angeles Times, as well as 160 weekly papers and 120 websites. Including Tribune’s debt, the offer is worth $815 million. Eliminating overlapping operations would let Gannett cut $50 million from its annual costs; it earned $209.1 million, or $1.79 a share, in 2015....

MCCORMICK & CO. INC. $93 (New York symbol MKC; Income Portfolio, Consumer sector; Shares outstanding: 115.3 million; Market cap: $10.7 billion; Price-to-sales ratio: 2.8; Dividend yield: 1.8%; TSINetwork Rating: Average; www.mccormick.com) has paid $114 million for Botanical Food Co. Based in Australia, this firm makes packaged herbs under the Gourmet Garden brand. It sells these products mainly in Australia and North America. The purchase complements McCormick’s existing spice products. It will also add $53 million to its annual sales of $4.3 billion. The stock now trades at 24.9 times the $3.73 a share that the company will likely earn in its current fiscal year. That’s a high multiple in light of McCormick’s growth-by-acquisition strategy and currency risk....

ALPHABET INC., Nasdaq symbols GOOG (class C non-voting), $718.77, and GOOGL (class A voting), $737.77, is the new holding company for Google’s Internet search business and its smaller, riskier operations. The company calls those smaller businesses its “Other Bets”; they sell home thermostats, high-speed Internet and digital TV services—among other tech products. In the three months ended March 31, 2016, Alphabet’s revenue rose 17.4%, to $20.3 billion from $17.3 billion a year earlier. The Google search engine business accounted for 99% of the total. If you exclude traffic acquisition costs (fees that Google pays affiliates to redirect traffic to its websites), Alphabet’s revenue rose 18.4% to $16.5 billion. On that basis, revenue just missed the consensus forecast of $16.6 billion....

CANADIAN PACIFIC RAILWAY LTD., $189.30, Toronto symbol CP, ships freight over a 22,000-kilometre rail network between Montreal and Vancouver, with links to hubs in the U.S. Midwest and Northeast. The company reported 4.4% lower freight volumes in the latest quarter. That’s mainly due to weaker prices for oil, minerals and other commodities. They forced many producers in Canada and the U.S. to reduce their production and so their shipping. As more U.S. power utilities switch to natural gas, coal shipments have also suffered. In the three months ended March 31, 2016, CP’s revenue fell 4.4%, to $1.59 billion from $1.67 billion a year earlier. That missed the consensus forecast of $1.61 billion....

STANTEC INC. $33.78 (Toronto symbol STN; TSINetwork Rating: Extra Risk) (780-917-7288; www.stantec.com; Shares outstanding: 93.9 million; Market cap: $3.1 billion; Dividend yield: 1.3%) sells a range of consulting, project-delivery, design and technology services. Stantec has made a big acquisition that will give it a major global presence in the water infrastructure industry. It’s paying $795 million U.S. to buy MWH Global. The infrastructure firm has 187 offices in 26 countries. MWH Global works on a number of large water infrastructure projects around the world, including the Panama Canal Third Set of Locks project. It also develops dams, hydroelectric power plants, water treatment facilities, coastal restoration and environmental assessment programs....

STANTEC INC. $33.78 (Toronto symbol STN; TSINetwork Rating: Extra Risk) (780-917-7288; www.stantec.com; Shares outstanding: 93.9 million; Market cap: $3.1 billion; Dividend yield: 1.3%) sells a range of consulting, project-delivery, design and technology services. Stantec has made a big acquisition that will give it a major global presence in the water infrastructure industry. It’s paying $795 million U.S. to buy MWH Global. The infrastructure firm has 187 offices in 26 countries. MWH Global works on a number of large water infrastructure projects around the world, including the Panama Canal Third Set of Locks project. It also develops dams, hydroelectric power plants, water treatment facilities, coastal restoration and environmental assessment programs....

TEMPUR SEALY $60.32 (New York symbol TPX; TSINetwork Rating: Speculative) (800-878-8889; www.tempursealy.com; Shares outstanding: 61.0 million; Market cap: $3.6 billion; No dividends paid) makes and distributes mattresses and neck pillows made of its patented memory foam, Tempur. Tempur Sealy’s earned $62.7 million, or $0.99 a share, in the quarter. That’s a 17.9% increase from the $53.2 million, or $0.86, a year earlier. Sales gained 2.9%, to $767.3 million from $745.5 million. North American sales (80% of the total) rose 3.8%. International sales (20%) fell 0.4%—but gained 12.1%, if you eliminate currency fluctuations....

WYNDHAM WORLDWIDE $77.67 (New York symbol WYN; TSINetwork Rating: Extra Risk) (973- 753-6000; www.wyndhamworldwide.com; Shares outstanding: 112.5 million; Market cap: $8.7 billion; Dividend yield: 2.6%) is one of the world’s largest hospitality companies, with 7,800 franchised hotels globally. Wyndham also manages vacation resorts, rental properties, luxury clubs and timeshares. It currently has around 112,000 vacation-rental properties in 100 countries. In the three months ended December 31, 2015, Wyndham’s revenue rose 6.5%, to $1.31 billion from $1.23 billion a year earlier....

Algonquin increases cash flow and power generation with the acquisition of Empire District Electric Co.

A: We haven’t found any infrastructure stocks we want to recommend as buys. But here’s a look at one of the hold recommendations by Stock Pickers Digest—as well as two prominent U.S. companies in the industry. Stantec, $33.18, symbol STN on Toronto (Shares outstanding: 93.9 million; Market cap: $3.1 billion; www.stantec.com), is a recommendation of Stock Pickers Digest. The company offers consulting and project management services for public works and a variety of facilities. It benefits from infrastructure investments all over North America. Stantec continues to grow by acquisition. At the same time, it cuts its costs by spreading administrative expenses, financing and employee benefits among its businesses and new acquisitions. But continually buying firms adds risk, including the risk of writedowns....