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TXT

Consumer Sector Update for 01/25/2017: BOBE,ACAT,TXT,HZN

Top Consumer Stocks

WMT -0.61%

MCD +0.52%

DIS +0.24%

CVS -2.69%

KO +0.52%

Consumer stocks were mixed just before the closing bell this afternoon, with shares of consumer staples companies in the S&P 500 slipping under water with a loss of less than 0.1% while shares of consumer discretionary firms in the S&P 500 were adding around 0.6% in value.

In company news, shares of Bob Evans Farms ( BOBE ) were holding slightly below their new all-time high Wednesday after a long-time institutional investor today cheered the upcoming sale of its namesake restaurant chain and the corresponding purchase of Pinewood Farms Potato Co.

Commenting on the sale of Bob Evans Restaurants to an affiliate of Golden Gate Capital for $565 million plus $40 million to $50 million in assumed debt and the acquisition of Pineland Farms for $115 million, Sandell Asset Management said the sale price of the restaurant assets was "slightly higher than the $560 million valuation" in its Oct. 11 presentation.

The sale also "is one of the tax-favorable separation alternatives that we have been strongly advocating," Sandell said in a late-morning statement, explaining it should help the company to fully focus on its farm foods segment.

BOBE shares were up nearly 21% at $57.82 apiece shortly before the closing bell Wednesday after earlier topping out today at a best-ever $60.95 a share.

In other sector news,

(+) ACAT, Agrees to $247 mln buyout offer from Textron ( TXT ), which will pay $18.50 for each ACAT share, a 40.7% premium over the Jan. 20 closing price.

(-) HZN, Plans public offerings of 4.03 mln shares of common stock and up to $115 mln of convertible senior notes due 2022. Sees GAAP net sales growing 3% to 3.5% before impact of Westfalia acquisition.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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