AMERICAS
Brazil has upheld proposals by Boeing to buy the jetmaking arm of Embraer, but plunging markets have raised urgent questions over the fate of the $4.2bn deal as aviation reels from the coronavirus crisis, Reuters reported. Brazil’s anti-trust watchdog dismissed prosecutors’ objections to the politically sensitive deal.
A slump in Embraer shares and cash concerns at Boeing driven by the impact of the coronavirus on air travel dealt a blow to the deal’s fragile economics.
Embraer Commercial Aviation is advised by Pinheiro Neto. Boeing is advised by Simpson Thacher & Bartlett. Embraer is advised by Citigroup, Barbosa Mussnich & Aragao, Skadden Arps Slate Meagher & Flom, and Cleary Gottlieb Steen & Hamilton.
RELX, a European information provider, through its subsidiary LexisNexis Risk Solutions, completed the acquisition of Emailage, a provider of fraud prevention and risk management solutions, for $480m.
"This acquisition is a natural fit as LexisNexis Risk Solutions and Emailage are both committed to continuously evolving our solutions to combat fraud. This acquisition will enhance and expand our email data intelligence to provide our customers a more comprehensive view of risk with minimal friction for their customers," Rick Trainor, LexisNexis CEO.
RELX was advised by Cravath Swaine & Moore. LexisNexis was advised by Montieth.
JH Whitney-backed CJ Foods, a custom manufacturer of specialty dry pet food, completed its acquisition of American Nutrition, one of America’s largest pet food manufacturers. Financial terms were not disclosed.
“Completing this transaction in a time of uncertainty speaks to the strength of the industry as well as these two world-class manufacturers. The combined organization will deliver an unparalleled national footprint and broad product portfolio with a focus on delivering products of the future through innovation and category leadership,” David McLain, CJ Foods CEO.
CJ Foods was advised by O’Malley Hansen Communications.
OMERS-backed, ERM, an environmental consultancy firm, completed the acquisition of MJ Bradley & Associates, a specialist energy, climate change and sustainability adviser. Financial terms were not disclosed.
“We are very excited to be joining an organization of ERM’s caliber and global reach. In North America, there is mounting pressure on companies to accelerate the transition to a low carbon economy and to demonstrate that they are properly managing climate-related risks and opportunities. Our new partnership will provide a powerful platform to help our clients navigate the changes ahead,” Michael Bradley, MJB&A President and Founder.
Maven, a group media network, completed its acquisition of LiftIgniter, a machine learning personalization platform powering recommendations for content across every digital touchpoint. Financial terms were not disclosed.
“Our team’s mission remains unchanged since the early days of digital media, which is to empower great journalism with great technology, material distribution, and monetization. LiftIgniter enables and enhances all three of these focus areas. Its powerful personalization technology, together with Maven’s leading edge technology stack, creates a product offering for publishers unmatched in the industry,” James Heckman, Maven founder.
Summit Partners climbs to €1bn in total for Europe Growth Equity fund. (FS)
Summit Partners, a Boston, Massachusetts-based private equity investment firm that invests in a broad range of companies headquartered in North America and Europe, raised €1bn ($1.1bn) of capital commitments for its third Europe-focused growth equity fund for what appears to be its final close.
EMEA
AbbVie and Allergan are closer to completing their $63bn merger. On Tuesday, the companies announced they entered into a consent decree agreement with the Federal Trade Commission that commits them to a previously announced divestiture of products ahead of the merger.
Late Tuesday, AbbVie ad Allergan said they signed the agreement with the FTC confirming the sale of products to AstraZeneca and Nestle. Earlier this month, the European Commission gave the green light to the merger agreement. The EC’s support of the deal was contingent on the divestiture of these assets. The two companies anticipate closing the deal in May 2020.
Allergan is advised by Evercore, JP Morgan, Arthur Cox, Slaughter & May, Wachtell Lipton Rosen & Katz, Weil Gotshal and Manges, and Sard Verbinnen & Co. AbbVie is advised by Morgan Stanley, PJT Partners, Kirkland & Ellis, Matheson, McCann FitzGerald, Davis Polk & Wardwell, and Abernathy MacGregor Group.
Perceptive Advisors-backed Arya Sciences, a special purpose acquisition company, is set to acquire Immatics Biotechnologies, a clinical-stage biopharmaceutical company, for $252m.
“We greatly value the commitment from Perceptive Advisors and other top-tier investors who are participating in this transaction, as well as our existing investors who have supported the development of Immatics to date. We believe this business combination with Arya represents a unique opportunity to transition our company onto a global stage," Harpreet Singh, Immatics Co-Founder and CEO.
Immatics is advised by Bank of America Merrill Lynch, Goldman Sachs, Kempen, SVB Leerink, CMS, Goodwin Procter, Solebury Trout, and Trophic Communications. Arya is advised by Chardan Capital Markets, Jefferies & Company, and Kirkland & Ellis.
Acerinox, a producer of stainless steel, completed the acquisition of VDM Group, a construction engineering company, from private equity firm Lindsay Goldberg for $586m.
"We are pleased with the outcome of this transaction for our investors, our partners and the dedicated management team and employees of VDM. Our investment in VDM is demonstrative of the value Lindsay Goldberg creates for our portfolio companies through deep industry expertise and our global network of highly skilled affiliate partners. We are confident that VDM is well-positioned to execute on its growth objectives under the ownership of Acerinox,” Michael Dees, Lindsay Goldberg Partner.
Acerinox was advised by KPMG, Goldman Sachs, and Linklaters. Lindsay Goldberg was advised by BSK Becker+Schreiner Kommunikation and Gasthalter.
Francisco-backed EG, a Danish industry-specific software provider, agreed to acquire Holte, a Norwegian construction software developer. Financial terms were not disclosed.
“By combining EG's and Holte's product portfolio we can deliver the best solution to manage the complex processes and data flow within the construction industry. I am impressed with Holte's deep knowledge of the construction industry and how they have digitized every step of the construction process. I look forward to welcoming Holte's employees to the EG family,” Mikkel Bardram, EG CEO.
Evonik Industries, a speciality chemicals manufacturer, completed the acquisition of innovativeHealth Group, a bio-pharmaceutical company. Financial terms were not disclosed.
"With this latest acquisition we have strengthened our innovative power in the area of cosmetic active ingredients. We will now be able to optimize the costs and development time, as well as achieve high quality and high performance products that show attractive and scientifically proven properties," Tammo Boinowitz, Evonik Senior Vice President.
Veezu, a private hire vehicle operator, completed the acquisition of Go Carz, a car hire company. Financial terms were not disclosed.
“I’m delighted to welcome everyone at Go Carz to Veezu. Go Carz is an extremely well managed and established business that complements our existing private hire brands. I look forward to working with Carl Wilday, Graham Hoof and Robin Gibson who will be helping us realise the Go Carz regional growth plan,” Nathan Bowles, Veezu CEO.
Shard Media Group, a media production company, completed the acquisition of Financial Services Expo, a mortgage events business services provider. Financial terms were not disclosed.
“This is the first acquisition for Shard and while it has completed at a time of caution due to COVID-19, we have tracked FSE and James for over three years. We look forward to building a base for further growth of the group both organically and by acquisition,” Nick Miller, SMG Chairman.
BMW not going to participate in large-scale M&A.
German carmaker BMW will not engage in significant merger and acquisition deals, even if the coronavirus crisis adds pressure on companies to share costs.
"There is currently no sense, or need, to do any M&A activities on the top level of the industry," Oliver Zipse, BMW CEO said, adding that there may be opportunities to expand the carmaker's expertise in certain components or competencies.
Total to acquire an 80% stake in Erebus floating wind project.
Global energy provider Total agreed to purchase an 80% stake in the Erebus floating wind project, located in the UK. An agreement has been signed with Simply Blue Energy in relation to the acquisition. Situated in the Welsh Celtic Sea, the wind project will have a 96MW capacity and will be installed in an area with a 70m water depth.
"With its entry into floating offshore wind, Total confirms its ambition to contribute to the development of renewable energy worldwide. Floating offshore wind is an extremely promising and technical segment where Total brings its extensive expertise in offshore operations and maintenance," Patrick Pouyanné, Total chairman and CEO.
Commerzbank still considers selling mBank.
Commerzbank is still planning to sell its Polish arm mBank, but only at the right price, the company’s finance chief said.
Some potential buyers have walked away from bidding, casting some doubt on any deal, which is a cornerstone of Commerzbank’s turnaround plans, Reuters reported.
Motif Bio considers making an acquisition.
Motif Bio said it is currently seeking a reverse takeover candidate as its share suspension deadline looms and only has enough cash to make it through to May.
Motif was reclassified as an AIM rule 15 cash shell after ceasing all operations and engaging Tamarack Associates to facilitate the sale of its antibiotic iclaprim, as well at other assets of its Motif unit.
"It remains the case that in spite of a comprehensive outreach programme, no transaction is currently pending for the sale of Motif's assets and there can be no assurance that there will be a transaction to monetise the assets," Motif Bio.
APAC
Canadian convenience store operator Alimentation Couche-Tard still wants to take over refiner and marketer Caltex Australia despite global market turmoil, Brian Hannasch Chief Executive said.
Couche-Tard is “in the middle of our due diligence process, and we will get comfortable by applying our usual rigor and discipline around M&A,” Hannasch told analysts on an earnings call.
Caltex’s shares have plunged about 40% since Couche-Tard raised its offer to A$8.8bn ($5.4bn) in mid-February and privately owned UK convenience store retailer EG Group made a rival offer of A$3.9bn ($2.4bn) in cash for its convenience stores plus shares in a spin-off company with its refining and fuel distribution assets.
Caltex is advised by Grant Samuel, UBS and Herbert Smith Freehills. Alimentation is advised by Goldman Sachs, Allens and Domestique.
Anchor Equity Partners, a South Korea-focused private equity firm, is set to acquire a 13% stake in Kakao M, a content producer, for $168m.
The private equity firm bought the shares for $146 apiece in a third-party allotment, with the transaction valuing Kakao M at more than $1.3bn.
CVC backs $1.3bn bid for Leyou Technologies. (FS)
Private equity firm CVC Capital Partners is backing a bid by Chinese game firm iDreamSky Technology to take over its rival Leyou Technologies Holdings in a $1.3bn deal, Reuters reported.
The consortium plans to make a binding $0.4 per share offer to take Hong Kong-listed Leyou private as soon as early April. The price represents an almost 30% premium to the $0.3 average price of Leyou’s shares since January.
Prudential Thailand to acquire bancassurance contract from FWD Group for $630m. (FS)
Prudential, the UK-based insurer under pressure from US activist investor Third Point, said it would acquire FWD Group’s Thailand bancassurance partnership for $630m.
The deal will see Prudential’s Thai unit buy the right to sell life insurance products in the south-east Asian country through Bangkok-based TMB Bank.
Prudential will have exclusive rights to sell life insurance products through the network of TMB, which is in the process of merging with Thailand’s Thanachart Bank, for an initial 15 years from the beginning of 2021.
Hyflux gets another bid from FCC Aqualia.
Singapore’s most high-profile restructuring case attracted a new offer from a Spanish company, adding more uncertainty to a drawn-out process that’s left many retail investors in the lurch.
Water treatment firm Hyflux said in an exchange filing that FCC Aqualia, which is also in the water management business, plans a potential transaction involving it or its assets, without giving details.
Australian Associated Press approached by potential bidders.
Potential bidders expressed interest in Australian Associated Press, the domestic news agency that announced earlier this month it would shut its doors in June.
"We've had approaches from a number of interested parties. There have been no bids made. We're just entering discussions," Bruce Davidson, AAP CEO,
AAP, advised by TMT Partners, will seek responses from the interested parties within 14 to 21 days.
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