EMEA
Fiat Chrysler Automobiles said it had completed the sale of its car parts unit Magneti Marelli to Calsonic Kansei for €5.8bn ($6.5bn), slightly below the initial price tag due to the unit’s changed financial position.
Fiat Chrysler (FCA) last year agreed to sell Magneti Marelli to CK Holdings - the parent of Japan’s Calsonic Kansei and a vehicle of US investment firm KKR - for €6.2bn ($6.95bn) to form the seventh-largest independent car parts supplier.
Magneti Marelli is advised by Legance. KKR is advised by Deloitte, Morgan Stanley, UBS, and Dentons. Calsonic Kansei is advised by Deloitte, Morgan Stanley, UBS, and Simpson Thacher & Bartlett.
GBfoods enters exclusive final negotiations with CVC Fund V to acquire Continental Foods. Financial terms were not disclosed.
Continental Foods was established in 1933 as a division of the Campbell Soup Company and was acquired by CVC Fund V in 2013. Continental Foods owns a portfolio of iconic local consumer brands such as Liebig, Royco, D&L, Erasco and Blå Band, among others, with a long heritage and brand awareness among consumers.
"GBfoods is delighted to have entered into exclusive final negotiations for the acquisition of Continental Foods. Continental Foods is a great group of very similar culture to GBfoods, complementary markets, local culinary brands, a long heritage, and a great team." Ignasi Ricou, GBfoods CEO.
GBfoods is advised by PricewaterhouseCoopers, AZ Capital, and Clifford Chance. CVC is advised by ING, UBS, and Cleary Gottlieb Steen & Hamilton.
Total Capital-backed Walkers Transport, a leading UK transport, and third-party logistics specialist acquired MTH Express Services, a UK logistics company, from Palletways, the UK’s leading pallet network. Financial terms were not disclosed.
Richard Simpson, Chief Executive Officer of Walkers Transport said: “We expect this acquisition to benefit both MTH’s staff and existing and future customers, as a result of being part of a larger group with greater reach across the Midlands, North of England and nationally. MTH has a great reputation in our industry and this transaction fits perfectly with our ambition to grow further, both organically and via targeted M&A.”
The European Commission has again suspended the deadline on its review of the planned takeover of Innogy’s network and retail assets by Germany’s E.ON, the watchdog said on its website.
The antitrust arm of the European Union in March opened an in-depth investigation of the deal, part of an asset swap between E.ON and Innogy owner RWE, after concluding it could lead to price increases in Germany and elsewhere. The regulator had only recently extended the review deadline to Aug. 13.
An E.ON spokesman said such a delay is normal in such a complex transaction and that E.ON will provide supporting documentation at the earliest opportunity, and still hopes to win clearance for the deal this year.
E.ON was advised by BNP, PWP, and Linklaters. RWE, the previous owner of Innogy, was advised by Bank of America Merrill Lynch, Citigroup, Rothschild and Freshfields Bruckhaus Deringer.
Atlantia cannot get involved in such a complex matter as the rescue of Italian flagship carrier Alitalia, the infrastructure group Chief Executive Giovanni Castellucci said.
“Our position has not change,” he told an event in Rome.
When asked whether his comments meant the “no” to any involvement in the rescue of Alitalia was final, Castellucci said he could not add anything.
Atlantia could decide to start formal talks with the government over the possibility of contributing to the rescue of the airlines in the hope of mending its relationship with the ruling coalition after the deadly collapse in August of a bridge it operated, Reuters reported.
Blackstone would buy a stake in BC Partners. (FS)
Blackstone Strategic Capital Holdings, a unit of Blackstone Group that buys stakes in alternative asset managers, is considering a minority investment in BC partners. The deal has not yet been disclosed.
BC could use the potential cash injection to help develop existing businesses plus new strategies like real estate and credit.
Cinven raises €10bn for the seventh fund. (FS)
International private equity firm Cinven has closes its seventh fund at its hard cap of €10bn ($11.2bn).
The fund, which reached its hard cap in less than four months and was oversubscribed, follows successful fundraising for the sixth Cinven fund, which reached its hard cap of €7bn ($7.85bn) in four months in 2016.
Fund seven attracted significant support from longstanding investors, with a very high re-up rate. The diversified investor base comprises more than 180 investors representing more than 30 countries globally.
Bombardier backs from 2020 forecast, plans to sell Belfast factory.
Bombardier, a manufacturer of transportation equipment worldwide, plans to sell its Belfast based wing factory as the company extends a revamp to focus primarily on making luxury jets and trains.
Before effectively pulling its 2020 forecast, the company had targeted financial objectives including revenue of at least $20bn and free cash flow of $750m to $1bn.
AMERICAS
3M has acquired Acelity and its KCI subsidiaries worldwide from a consortium comprised of funds advised by Apax Partners, together with controlled affiliates of Canada Pension Plan Investment Board and the Public Sector Pension Investment Board for a total enterprise value of approximately $6.7bn, including the assumption of debt, subject to closing and other adjustments.
The Acelity business is well known for creating and growing new segments based on the ability to identify and address unmet clinical needs with KCI-branded products that advance the practice of medicine, beginning with the introduction of V.A.C.® Therapy - groundbreaking Negative Pressure Wound Therapy.
“Acelity is a recognized leading provider of advanced wound care technologies and solutions and an excellent complement to our Health Care business. This acquisition bolsters our Medical Solutions business and supports our growth strategy to offer comprehensive, advanced and surgical wound care solutions to improve outcomes and enhance the patient and provider experience." Mike Roman, 3M chief executive officer.
The Consortium of Sellers is advised by Goldman Sachs JP Morgan, Jackson Walker, Simpson Thacher & Bartlett. 3M is advised by Credit Suisse and Cleary Gottlieb Steen & Hamilton.
AE Industrial Partners (AEI), a private equity investor specializing in Aerospace & Defense, Power Generation, and Specialty Industrial businesses, acquired Alpine Air Express, a leading air cargo operator providing regional air cargo services. Financial terms were not disclosed.
As part of this transaction, AEI has partnered with the Company’s existing shareholders, including Michael Dancy who will continue in his role as CEO of Alpine.
“AEI is a perfect partner for us given their deep industry knowledge and experience working with unique, growing platforms throughout the aviation marketplace.”, Michael Dancy, Alpine CEO.
AEI was advised by Ankerman and KPMG.
Leading PRC-based professional sportswear enterprise Xtep International Holdings, through its wholly-owned subsidiary, has entered into a Stock Purchase Agreement with E-Land World Company and E-Land USA Holdings whereby Xtep will acquire all the outstanding shares of the capital stock of E-Land Footwear USA Holdings, the ultimate owner of K-Swiss, Palladium and Supra brands, for a cash consideration of $260m. The Acquisition will be financed by internal resources and is expected to be completed by the end of July 2019.
The Group considers the Acquisition as an attractive opportunity to invest in a portfolio of globally renowned sportswear and lifestyle brands targeting the high-end market segment. In particular, K-Swiss, a heritage athletic shoe brand founded in California in 1966, offers performance tennis footwear, lifestyle, and fitness footwear meeting the high-performance demands of world-class athletes and trendsetters. As for Palladium, it is also one of the best known global pampa boot brands established in France in 1947. Brands currently have a global presence covering more than 80 countries and territories.
“Following the success of our three- year strategic transformation, we stepped into a new era of business. Not only will it strengthen Xtep’s foothold in the expanding Chinese sportswear market, but will also provide us with growth opportunities in untapped overseas markets such as Southeast Asia.” Mr. Ding Shui Po, Xtep Chairman, and Chief Executive Officer.
Xtep is advised by HSBC.
AMN Healthcare, a leader and innovator in healthcare workforce solutions and staffing services to healthcare facilities across the United States, would acquire Advanced Medical, a staffing company that specializes in placing outstanding therapists and nurses in contract and permanent positions across the United States, for $200m.
The deal is set to be for $200m and an additional $20m to be paid based on Advanced's 2019 financial performance. The deal is expected to be completed by early June 2019.
"We are pleased that AMN will further accelerate the unique position Advanced has developed in healthcare staffing, particularly in school services and technology to deliver therapy remotely.", Jennifer Fuicelli, Advanced CEO.
Chevron, an American multinational energy corporation, completed acquiring Pasadena Refinery System, which includes the refinery in Texas, from Petrobras, a semi-public Brazilian multinational corporation in the petroleum industry, for $350m.
The Pasadena refinery is the second on the US Gulf Coast for Chevron, which is based in San Ramon, California.
“This expansion of our Gulf Coast refining system enables Chevron to process more domestic light crude, supply a portion of our retail market in Texas and Louisiana with Chevron-produced products, and realize synergies through coordination with our refinery in Pascagoula,” said Pierre Breber, Executive Vice President of Chevron Downstream & Chemicals.
Chevron is advised by Jones Day and Shearman & Sterling. Petroleo is advised by Credit Suisse, Evercore, and Linklaters.
Newell Brands, a worldwide American marketer of consumer and commercial products, sold its processing solutions unit, which manufactures custom-designed plastic, nylons, monofilament, and zinc products that solve both industrial and consumer challenges, to private equity firm One Rock Capital Partners for $500m.
One Rock Managing Partner R. Scott Spielvogel said: “We believe that as a standalone business, Process Solutions can expand its offerings and bolster its global customer relationships. Working together with management and our Operating Partners, we look forward to growing the company through strategic acquisitions and operational and technological improvements.”
Private equity firm Rhone Capital acquired Rexair, an American manufacturer of home cleaning systems, from Newell Brands, a worldwide American marketer of consumer and commercial products. Financial terms were not disclosed.
The deal is part of Newell's Accelerated Transformation Plan, designed to create a simpler, faster, stronger consumer-focused portfolio of leading brands.
Newell was advised by BMO Capital Markets.
Lightyear Capital, a New York-based private equity firm focused on financial services investing, have acquired Engage PEO, a professional employer organization providing HR outsourcing solutions to small and mid-sized businesses across the US. The company will continue to operate as Engage PEO, and the current management team will remain part of the ownership structure and in place with no operational changes impacting clients and brokers. The transaction is expected to close in the second quarter of 2019, and financial terms were not disclosed.
“The PEO industry represents an attractive growth sector for Lightyear, one that we have been tracking for years. Engage focuses on delivering the highest levels of quality service to its growing client base. We look forward to working with Jay and his management team to add to an already successful effort to grow their portfolio of clients and services.” Mark Vassallo, Lightyear Capital Managing Partner.
Engage EPO is advised by Piper Jaffray and Jones Day.
Lightyear Capital, a New York-based private equity firm focused on financial services, have acquired a controlling stake in Lighthouse Technologies Holdings, a leader in technology-enabled eDiscovery, compliance and information governance. Several existing investors and the senior management team will remain committed shareholders as part of this transaction. Financial terms were not disclosed.
Lighthouse provides end-to-end software and services to help compliance and legal organizations manage enterprise data and the eDiscovery process.
“Our investment in Lighthouse follows several years of active efforts to identify and pursue leading companies in the rapidly expanding field of financial services governance, risk and compliance. Lighthouse has a strong and dedicated management team, and we look forward to working with them as they continue to execute on their growth strategy.” Mark F. Vassallo, Lightyear Managing Partner.
Lightyear Capital is advised by William Blair & Co. Lighthouse is advised by Macquarie Capital.
Sealed Air has signed a definitive agreement to acquire Automated Packaging Systems, a leading manufacturer of high-reliability, automated bagging systems, for a purchase price of $510m on a cash and debt-free basis.
APS provides full flexible packaging systems, including industry-leading equipment, sustainable materials, and technical services. Known for inventing Autobag® bagging machines and pre-opened bags on a roll, APS also offers three recycled film solutions under the EarthAware® brand.
“Automated Packaging Systems is a market leader with unique and innovative solutions, complete with automated equipment, materials, and services. The addition of APS is well aligned with our Reinvent SEE goal of doubling our innovation rate over the next five years. This transaction expands the breadth of our automated solutions and sustainable packaging offerings, giving us access to growth opportunities in the markets we serve.” Ted Doheny, Sealed Air President, and CEO.
Sealed Air is advised by Goldman Sachs and K&L Gates.
Pluralsight, an enterprise technology skills platform that delivers a unified, end-to-end learning experience for businesses across the globe, would acquire GitPrime for $170m.
The acquisition is expected to be closed on the 6th of May 2019.
Pluralsight and GitPrime will create an entirely new way to measure and improve developer productivity and performance, solving an age-old problem that has plagued technology leaders for decades.
“With Pluralsight’s powerful platform, global reach and presence in the world’s largest companies, we are thrilled to join forces and further enhance the way companies build and create software using today’s most valuable skills.”, Travis Kimmel, GitPrime CEO.
AUA Private Equity Partners, an investment firm providing strategic capital to companies in the consumer products and services sectors, invests in Gourmet Culinary Holdings LLC, a holding company focused on acquiring stakes in specialty food manufacturers in the US. Financial terms were not disclosed.
AUA completed the partnership under Gourmet Culinary, investing alongside the owners of Gourmet Kitchen.
“We are excited to establish the Gourmet Culinary Holdings platform and partner with talented operators at each of Gourmet Kitchen and Kabobs." Andy Unanue, AUA Managing Partner.
Apollo to transform into a corporation from partnership. (FS)
Apollo Global Management said it would abandon its partnership status and become a corporation, following private equity rivals Blackstone and KKR, which have opted to pay more tax in an effort to simplify their structure and draw more investors.
The investment group estimates corporate taxes will eventually eat up between 7-9% of the profit it would otherwise have earned, with a smaller impact in the first year. But it believes wider ownership could smooth out the volatility in its share price.
Analysts go further, arguing that listed private equity firms could enjoy permanently higher stock market valuations if they can attract a slice of the $6.8tn now held by passively managed funds, despite the drag on earnings from having to pay more tax.
Andreessen Horowitz raises $2.75bn for Two New Funds. (FS)
Andreessen Horowitz, a firm that in just a decade become one of the powerhouses of venture capital, it had raised another $2.75bn.
The bulk of the cash, $2bn, will go toward a new late-stage fund, led by general partner David George. He joined Andreessen Horowitz earlier this year from venture firm General Atlantic.
APAC
Wesfarmers has acquired Kidman Resources about its proposal to acquire 100% of the outstanding shares in Kidman for $1.90 cash per share by way of a scheme of arrangement. The price represents a premium of 47.3% to the last closing price and corresponded to a transaction value of approximately A$776m ($544m).
Kidman’s primary asset is a 50% interest in the Mt Holland lithium project based in Western Australia, which it owns jointly with Sociedad Quimica y Minera de Chile, one of the world’s largest producers and marketers of lithium products. The project includes the construction of a mine and co-located concentrator at Mt Holland, and a lithium hydroxide refinery in Kwinana. Lithium hydroxide is key to the electric vehicle value chain.
“The proposed acquisition is consistent with our objective of deploying capital in areas where we can deliver attractive returns to our shareholders by leveraging our existing strengths and capabilities. It will underpin the development of the Mt Holland lithium project and deliver Kidman’s shareholders an attractive premium and certain cash return,” Rob Scott, Wesfarmers Managing Director.
Kidman is advised by Greenhill.
LafargeHolcim has signed an agreement with YTL Cement Berhad for the divestment of its entire 51% shareholding in Lafarge Malaysia Berhad for a consideration of $396m fully payable in cash, corresponding to MYR 3.75 per share. This price represents a premium of 43 percent compared to the last 90 days trading period of Lafarge Malaysia Berhad on the Malaysian stock exchange.
Lafarge Malaysia Berhad operates three integrated cement and two grinding plants. With the divestment, LafargeHolcim will fully exit the Malaysian market. YTL Cement Berhad is part of YTL Corporation Berhad, a Malaysian infrastructure conglomerate, which is mainly active in cement production, construction, property development, and utilities. Additionally, LafargeHolcim has signed an agreement with YTL Cement Singapore for the divestment of its entire 91% shareholding in Holcim Singapore.
"As part of our Strategy 2022 – ‘Building for Growth’ we have committed to divestments in order to deleverage and to further strengthen our balance sheet. The proceeds from this transaction will further improve our debt ratios with the target of 2 times* Net Debt to Recurring EBITDA by the end of this business year.” Jan Jenisch, LafargeHolcim CEO.
AVID Property makes a sweetened $206m, representing a share premium of 18.1% for Villa World, an Australian-based real estate developer.
The offer comes at a time of significant downturn in Australia’s once-booming property market. Housing prices have declined consistently since late 2017 amid tighter lending restrictions.
Villa World has also been a casualty of the economic downturn with the company saying in December it would not achieve its fiscal 2019 guidance, due to deteriorating residential housing market conditions and customer sentiment.
Pegasus 7 Ventures, an investment fund managed by Singapore’s Gordian Capital, acquired a digital ventures portfolio of Axiata Group, a Malaysian telecommunications conglomerate, for $140m.
The sale consists of ownership stakes in category-leading digital businesses such as India’s largest rural commerce platform, StoreKing, and global micro-insurance company, BIMA.
“It is a pleasure to partner with Axiata Digital on a portfolio which addresses emerging market needs, with distinct solutions and innovations for those at lower income groups. These companies are poised to scale significantly and create value for their stakeholders while continuing to make positive impacts in underserved communities. The addition of these assets to the Pegasus 7 portfolio is synergistic with our thematic focus and will serve as an enabler for our future growth path.” Gautam Saxena, Founder Pegasus 7 Ventures.
India’s ride-hailing company Ola seeks to raise $355m more in Series J funding.
Indian ride-hailing company Ola is planning to raise an additional $355m as part of its ongoing funding round, according to the company’s filings with the Registrar of Companies (RoC).
The Bengaluru-based company is looking to raise a total of $1bn in the Series J round, which is expected to increase its valuation to about $6bn. Since its launch in 2011, Ola has raised about $3.8bn in primary capital from a number of local and global investors, according to Crunchbase. In March, South Korean automakers Hyundai Motor and Kia Motors had invested $300m in Ola in their biggest combined investment.
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