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AMERICAS
Eldridge-backed Metropolis Technologies, a technology company whose computer vision platform enables checkout-free payment experiences, agreed to acquire SP Plus, a provider of parking, baggage handling, ground transportation, facility maintenance, event logistics, and security services, for $1.5bn.
"Today we announced a transformational acquisition that represents both a new paradigm in how technology companies grow and a significant step forward in offering consumers a remarkable experience. SP+ is a phenomenal business whose operational excellence, talented leadership team and high customer satisfaction levels have long made it a key partner to real estate owners across North America. The combined platform will seek to bring checkout-free payment experiences to consumers," Alex Israel, Metropolis Co-Founder and CEO.
SP Plus is advised by Morgan Stanley, Skadden Arps Slate Meagher & Flom (led by Shilpi Gupta and Eric Otness) and Advisiry Partners (led by David Gold). Metropolis is advised by BDT & MSD Partners, Goldman Sachs, Fenwick & West, Willkie Farr & Gallagher (led by Steven Seidman, Laura Delanoy and Morgan McDevitt) and FGS Global (led by Kerry Golds). Debt financing is provided by Goldman Sachs and Maranon Capital. Eldridge is advised by Sidley Austin and Prosek Partners (led by Nadia Damouni).
Sagicor Financial, a financial services provider, completed the acquisition of ivari, a provider of a full range of insurance products, from Wilton Re, a provider of in force and reinsurance solutions, for $250m.
“This is a significant day in the proud history of Sagicor. The Canadian market, with which the Caribbean has many ties, is a natural one for Sagicor to grow into. ivari is a great fit; its product portfolio aligns with our strength in individual life insurance, their team’s strong culture mirrors ours, and it is financially attractive. Adding ivari immediately enhances our earnings generation, expands our asset base in a highly rated investment grade jurisdiction, and provides an attractive avenue for growth," Andre Mousseau, Sagicor President and CEO.
Sagicor was advised by JP Morgan, National Bank Financial, RBC Capital Markets, Paul Hastings, Stikeman Elliott (led by Stuart S. Carruthers). Wilton Re was advised by Goldman Sachs, Wells Fargo Securities, Debevoise & Plimpton (led by Andrew G. Jamieson and Marilyn Lion) and Torys.
Wren House, an infrastructure investment manager, agreed to acquire a minority stake in SeaCube Container, a refrigerated containers company, from OTPP, a pension fund company. Financial terms were not disclosed.
“We are excited to partner with SeaCube’s exceptional management team and Ontario Teachers’ to accelerate the Company’s growth plans. As SeaCube’s global clients seek to increase efficiency, reliability and reduce their carbon footprint, SeaCube is best positioned as their partner of choice to meet their growing demand and expectations for intermodal transport. This investment fits Wren House’s strategy of building a global and resilient infrastructure portfolio with outstanding management teams and aligned partners," Philippe Busslinger, Wren House CEO.
Ember Infrastructure, a private equity firm, agreed to acquire H2O Innovation, a water and wastewater treatment company, for $395m.
“After extensive work we have concluded that this transaction is in the best interest of H2O Innovation and fair to our Shareholders. Following a comprehensive assessment and our extensive negotiations with the Purchaser, we are pleased to have reached an agreement that provides immediate and fair value to our Shareholders. In addition to the attractive premium offered to H2O Innovation’s Shareholders, Ember has agreed to key commitments for H2O Innovation and its stakeholders. Ember appreciates the significance of H2O Innovation’s Québec roots that will remain an important foundation for the Corporation as it continues its growth, and has agreed to maintain H2O Innovation’s head office in the Province of Québec,” Lisa Henthorne, H2O Innovation Chairwoman of the Board.
H2O Innovation is advised by Desjardins, Scotiabank and Norton Rose Fulbright. Ember Infrastructure is advised by Raymond James, Davies Ward Phillips & Vineberg and Weil Gotshal and Manges (led by Michael J. Aiello).
TransAlta, an electrical power generation assets holder and operator, completed the acquisition of the remaining 39.9% stake in TransAlta Renewables, a renewable independent power producer, for $1.04bn.
"The closing of the acquisition of TransAlta Renewables represents a key milestone for TransAlta with our simplified and unified corporate structure positioning the company well for future success. The combined company will unify our assets, capital, and capabilities to enhance cash flow predictability while enhancing our ability to realize future growth," John Kousinioris, TransAlta President and CEO.
TransAlta Renewables was advised by National Bank Financial, TD Cowen and Stikeman Elliott. TransAlta was advised by RBC Capital Markets and Norton Rose Fulbright.
CCMP Growth Advisors, a private equity firm, Shawn Roberts and Tyler Wallace, Decks' CEO and President, agreed to acquire Decks & Docks, a specialty distributor of marine construction and outdoor living supplies. Financial terms were not disclosed.
"Decks & Docks is exactly the type of business with which CCMP Growth seeks to partner, with its leading position in the attractive outdoor living-focused market, strong secular tailwinds from favorable consumer spending trends and a growth strategy that aligns with our expertise in scaling multi-site platforms. We look forward to supporting Shawn, Tyler and the exceptional team at Decks & Docks as we work together to continue the company's growth strategy of expanding through organic initiatives at existing sites, new unit openings and strategic acquisitions," Joe Scharfenberger, CCMP Growth Co-Managing Partner.
Decks & Docks is advised by Raymond James and Morgan Lewis & Bockius. CCMP Growth is advised by Robert W Baird, Ropes & Gray and FGS Global.
Suncor Energy, a unique and sustainable energy company, agreed to acquire the remaining 31.23% stake in Fort Hills, an open-pit truck and shovel mine, from TotalEnergies, an energy and petroleum company, for $1.07bn.
“The transaction secures additional long-term bitumen supply to fill our Base Plant upgraders at a competitive supply cost, addressing a key uncertainty for the company and adding long term shareholder value. With 100% ownership of Fort Hills we will pursue opportunities to create additional value through regional synergies and basinwide management of our unparalleled, integrated oil sands asset base. This transaction is aligned with our strategy to wholly own and operate long-life strategic assets," Rich Kruger, Suncor Energy President and CEO.
Suncor Energy is advised by JP Morgan, Blake Cassels & Graydon and Paul Weiss Rifkind Wharton & Garrison.
Exchange Income, a diversified, acquisition-oriented company, completed the acquisition of DryAir Manufacturing, a manufacturer of climate control solutions, for $60m.
"This acquisition hits all EIC's acquisition requirements, including being accretive to our shareholders on a per share basis and exceeds our investment thresholds on a historical basis and especially on forward looking metrics. DryAir is a recognized leader in hydronic heating based on our discussions with its key customers throughout North America. DryAir has a culture embedded in innovative design and engineering which will allow it to continue to grow its product portfolio and financial performance into the future," Adam Terwin, EIC Chief Corporate Development Officer.
DryAir was advised by Ernst & Young and McDougall Gauley. EIC was advised by MLT Aikins.
Love's Travel Stops, a convenience stores chain, completed the acquisition of TVC Pro-Driver, a platform for subscription-based commercial driver's license protection services, from Gauge Capital, a middle market private equity firm. Financial terms were not disclosed.
"We partnered with TVC in 2019 with the goal of building a best-in-class offering that enhanced the already significant benefits that the comprehensive commercial driver's license protection provides for truck drivers, and the partnership with Love's is the culmination of those efforts. We are thankful to have worked with Jon Russell and the rest of the TVC team and look forward to what this new partnership will bring for the Company," Tom McKelvey, Gauge Capital Co-Founder and Managing Partner.
TVC Pro-Driver was advised by DC Advisory, Jefferies & Company and Ropes & Gray.
ConocoPhillips, a hydrocarbon exploration and production company, completed the acquisition of the remaining 50% stake in Surmont oil sand assest from TotalEnergies, an energy and petroleum company, for $3bn.
"Long-life, low sustaining capital assets like Surmont play an important role in our deep, durable and diverse low cost of supply portfolio. This transaction enhances our returns-focused value proposition, improves our return on capital employed, lowers our free cash flow breakeven and is expected to deliver significant free cash flow for decades to come. We know this asset very well and plan to further optimize it while remaining on track to achieve our GHG emission intensity reduction goals," Ryan Lance, ConocoPhillips Chairman and CEO.
TotalEnergies was advised by Citigroup.
Dover, a conglomerate manufacturer of industrial products, agreed to acquire FW Murphy, a provider of control, remote monitoring, digital-twin-based predictive maintenance, from Genisys Controls, an operator of a group of subsidiaries in diversified sectors, for $530m.
"FW Murphy is a highly regarded technological pioneer and leader in controlling and optimizing the performance of reciprocating compressors and engines. Adding its portfolio of solutions will allow DPC to offer reciprocating compression customers an unparalleled choice of technologies to improve efficiency, promote safety, reduce their carbon emissions, and accelerate clean energy adoption. We expect to achieve tangible growth synergies from our combined product offerings and global go-to-market channels," Marcell Ulrichs, DPC President.
Labcorp, a laboratory services provider, agreed to acquire the outreach laboratory business and select operating assets from Baystate Health, a not-for-profit, integrated healthcare system. Financial terms were not disclosed.
"Labcorp is focused on delivering high-quality, cost-effective laboratory testing to health systems, physicians, patients, health plans and communities we serve. We are thrilled to grow our important relationship with Baystate Health and to realize our shared vision to enhance the patient and provider experience in the communities Baystate serves," Bill Haas, Labcorp Senior Vice President of Northeast Division.
Bulls bet mega cap stocks primed for buyback boost.
Bulls hoping the Nasdaq 100’s best day since August is the start of a meaningful rebound may be about to get a boost from a long-standing ally: tech companies themselves, Bloomberg reported.
Led by the likes of Apple and Microsoft, Big Tech has for years been among the most extravagant spenders on their own stock, often to reduce dilution as new shares issued for compensation hit the market. The six biggest tech firms that repurchase shares have more than $250bn set to deploy, from existing programs or ones authorized this year.
Permian set for M&A frenzy as cash-rich producers seek to boost reserves.
Dealmaking is picking up in the Permian basin, the largest US oil patch, as drillers look to quickly rebuild their depleting assets, Reuters reported.
Permian is a prime target for producers looking to increase their inventory. The shale patch, which lies between Texas and New Mexico, has the necessary infrastructure and is known for high productivity and large undeveloped reserves.
AT&T is exploring options for DirecTV as pay-tv subscriptions continue to decline.
AT&T has begun to explore options for its 70% stake in DirecTV as it approaches the end of an agreement under which it can legally sell its interest in America's third-largest pay-TV provider, Bloomberg reported.
Among AT&T's options are: a dividend recapitalization, adding a new investor, or selling the stake and exiting the venture as early as August 2024. A deal isn't imminent and discussions are still in the early stages.
KKR’s Sheldon sees private credit becoming evergreen allocation. (FS)
KKR sees more investors permanently allocating to private credit alongside other fixed-income assets even as public credit markets regained some strength in recent months, Bloomberg reported.
More of the firm’s clients are increasingly shifting the $1.5tn private credit market from a tactical allocation to an evergreen bucket, said Christopher Sheldon, KKR Co-head of credit and markets. That’s in spite a pick-up in issuance for syndicated loans and high-yield bonds this year that has allowed banks to compete more aggressively with private credit funds to finance deals.
World's biggest sovereign fund buoys recovery in US IPOs. (FS)
Norway's oil and gas is helping to fuel the nascent recovery in US initial public offerings, Bloomberg reported.
Norges Bank Investment Management, the country's $1.4tn wealth fund, was among three cornerstone investors touted by German sandal maker Birkenstock on October 2 as it kicked off its $1.6bn IPO roadshow. Together, these investors offered to buy at least 40% of the offering.
BlackBerry plans IPO for its Internet of Things business.
BlackBerry, wrapping up a strategic review of its options, plans to hold an initial public offering for the company's Internet of Things division, separating the business from its main cybersecurity operations, Bloomberg reported.
The split is expected to occur in the first half of the next fiscal year. BlackBerry's fiscal calendar runs through February.
Baseball cap maker NewEra picks JP Morgan to lead IPO.
New Era Cap, the maker of caps for major US sports leagues, has started to fill out its advisory ranks as it prepares for an initial public offering, Bloomberg reported.
New Era, which is backed by the National Football League, Major League Baseball, and the National Basketball Association, has chosen JP Morgan as lead underwriter for a listing that could take place in 2024. The exact timing of a listing is yet to be finalized.
Intel-backed Astera taps Morgan Stanley, JP Morgan for 2024 IPO. (FS)
Astera Labs, the semiconductor connectivity solutions firm backed by investors including Intel’s venture arm, is working with investment banks to prepare for an initial public offering that could come as soon as next year, Bloomberg reported.
The Santa Clara, California-based company has appointed Morgan Stanley and JP Morgan as lead underwriters for the listing. The exact timing of a listing in 2024 hasn’t been finalized and Astera’s plans could still change.
500 Global in the market to raise new global VC fund. (FS)
San Francisco-based venture investor 500 Global is in the market to raise a new global fund, about two years after it secured $140m for the predecessor vehicle. Its filing with the US Securities and Exchange Commission did not disclose the amount it seeks to raise for 500 Global Flagship VI LP but said the fundraising for the venture capital fund will not last more than a year, DealStreetAsia reported.
The filing was signed by Christine Tsai, CEO and founding partner of 500 Global. The filing comes about two years after 500 Global, which was then 500 Startups, secured $140m for its fifth global flagship fund as it continued to expand its investment strategy beyond accelerator and seed stage.
EMEA
Abcam has defended the handling of its proposed $5.7bn takeover by Danaher, insisting that the UK life sciences company rejected inadequate bids and pushed the US group to increase its offer, FT reported.
Alan Hirzel, chief executive of the Cambridge-based company, dismissed accusations by its co-founder Jonathan Milner, who plans to vote against the deal and wants to unseat the board and take over as CEO.
Nord-backed Heizkurier, a manufacturer of mobile heat centers, completed the acquisition of Suter Group, a supplier of mobile pellet heating. Financial terms were not disclosed.
With the acquisition, NORD is implementing its growth and sustainability-focused strategy for Heizkurier to establish a market leader for equipment-as-a-service of mobile heating solutions in the DACH region. With around 180 employees at 17 locations, the combined group aims at further internationalization and expansion of its mobile refrigeration business. The existing management and the founders of Suter participate in the merger.
General Atlantic, a tech investor, and Carmignac, an asset manager, completed the investment in Clipway, a global secondaries firm. Financial terms were not disclosed.
"Private equity is an asset class in which we see attractive long-term growth opportunities. The Clipway leadership team has participated in one of the most successful track records in secondaries globally - the best segment to deploy fresh money in the current private equity environment as it provides attractive entry points, superior visibility and diversification. We share the same entrepreneurial mindset and ambitions; and we are excited to be taking this new step on our private equity journey," Maxime Carmignac, Carmignac CEO.
Hedin, PAG International to drop bid for British car dealer Pendragon.
Hedin Mobility Group and US-based PAG International said on October 4 that they would not make an offer for British automotive retailer Pendragon, just a fortnight after sweetening their takeover proposal, Reuters reported.
Hedin, which holds a 27.6% stake in Pendragon and is the top shareholder, and PAG had sweetened a proposal to buy the company for £0.32 ($0.39) per share last month. The London-listed retailer had earlier rejected a proposal of £0.28 ($0.34) per share.
Celsa's creditors agree on takeover terms with Spain. (FS)
The Spanish government and the creditors of Celsa Group have agreed conditions for the takeover of the steelmaker. Creditors, including Strategic Value Partners and Sculptor Capital Management, will file a foreign direct investment application this week to take effective control of the company, Bloomberg reported.
The process could take up to three months to complete. The agreement follows a decision a month ago by a commercial court in Barcelona to approve the creditors' plan to take over the company from the Rubiralta.
Air France-KLM remains interested in TAP takeover after the SAS investment.
Portugal's government plans to sell at least a 51% stake in state-owned airline TAP, the government said on September 28 after the cabinet approved the legal framework for the privatization process. The airline's privatization has already attracted interest also from Lufthansa and British Airways owner IAG.
Sanctioned Russian lender Sovcombank preparing for IPO in the coming months.
Russian lender Sovcombank on October 5 said it was considering an initial public offering in the coming months, with shareholders believing that a large bank should be public and that after years of planning, now was the time to list, Reuters reported.
Russia's equity capital markets have been starved of deals since Moscow despatched troops to Ukraine in February 2022, prompting sanctions and the departure of Western bankers and lawyers. Technology company Astra will open the books for its IPO on October 5. The latest in a couple of small Moscow listings this year that have been characterized by retail investor participation and modest capital raises.
Oman’s OQ Gas Networks IPO likely to price at the top end of the range.
The $771m initial public offering of OQ Gas Networks is likely to price at the top of a marketed range, setting it on track to be the country’s biggest listing on record, Bloomberg reported.
Orders below $0.36 per share risk missing out on the deal. Institutional investor books are multiple times oversubscribed at this level. The firm will continue taking institutional investor orders until October 9.
First Middle Eastern SPAC raises $200m in PIPE financing. (FS)
The first blank-check company to list in the Middle East completed $200m fundraising following a recent merger with an identification card printing company, Bloomberg reported.
ADC Acquisition, backed by Chimera Investments and Abu Dhabi wealth fund ADQ, raised the funds via a private investment in public equity — or PIPE — financing that was oversubscribed by more than ten times. Total demand from qualified and institutional investors exceeded $2.1bn.
APAC
Tata is said to be in advanced talks for Temasek’s Tata Play stake. (FS)
Tata Group is in advanced talks with Temasek to buy back a stake in its entertainment content distribution platform at a valuation of more than $1bn, Bloomberg reported.
The Indian conglomerate and the Singaporean state investor are in the final stages of discussions around the interest of about 20% in Tata Play. Tata Group could potentially cement its grip on the platform, formerly known as Tata Sky, as it’s considering buying a stake held by its flagship private equity fund Tata Opportunities Fund.
Japan M&A blazes trail as global deals decline. (FS)
Japan's M&A market is standing out against a worldwide decline this year, thanks to surging domestic deals as rising costs, stricter governance rules, and shareholder pressure forces companies to explore strategic options. The total value of M&A transactions involving Japanese companies grew 14% year-on-year to $111bn for the first nine months of 2023, making the country the only major market in the world that recorded growth, Reuters reported.
The momentum is expected to continue in the near term as prospects of more corporate restructuring, carve-outs, and management buyouts make it a favored hunting ground for global private equity. "The Japanese stock market is performing quite well, and this type of favorable environment encourages the founders and those with concentrated ownership to consider selling," David Gross-Loh, Bain Capital Asia Managing Partner.
Singapore renewable developer seeks partners for massive battery. (FS)
Infrastructure developer HRL Morrison has begun talks with possible strategic partners for a mega-sized battery project in Indonesia aimed at weaning Singapore off natural gas, Bloomberg reported.
The New Zealand-based fund has hired advisers for discussions it hopes to close in the next 12 months for partners with experience in the region to take a stake in its multibillion-dollar Vanda RE project.
Blackstone teams up with SG-based portfolio firm Interplex to launch a mobility business. (FS)
Blackstone Private Equity has teamed up with its Singapore-based portfolio company Interplex to launch ENNOVI, a new mobility electrification solutions business that designs, develops, and engineers innovative interconnect solutions for the electric vehicle industry, DealStreetAsia reported.
The carve-out of Interplex’s mobility business was the culmination of a strategic reorganisation and transformation of its core business. ENNOVI will focus primarily on the automotive electrification solutions, designs and engineers battery, power platform and signal interconnect solutions for EVs, while Interplex will continue to prioritise the datacom and industrial market with high-precision mechanical solutions and busbar technologies.
Oyo is talking to Apollo for a $660m refinance as the IPO is delayed. (FS)
Oyo Hotels is in talks with Apollo Global Management to refinance a $660m loan as the once-high-flying startup seeks more time to cut debt following a delay in its initial public offering, Bloomberg reported.
Oravel Stays, as Oyo’s parent company, is known to be seeking to extend maturity to five years compared with the existing 2026 deadline. A decision could be reached as early as next month.
Robot maker doubles in debut after biggest 2023 South Korea IPO.
Doosan Robotics nearly doubled in its trading debut in Seoul after raising $312m in South Korea’s largest initial public offering this year, Bloomberg reported.
Shares of the robot maker closed their first day 98% higher at $39.8 after surging as much as 160% intraday. The company, with Seoul-listed Doosan as its biggest shareholder, last month sold 16.2m shares at $19.2, the top of a marketed price range.
MARS Growth Capital launches first equity fund with $500m initial commitment. (FS)
Singapore-based venture debt firm MARS Growth Capital has launched its first equity fund with an initial $500m commitment, marking its official foray into the equity space, DealStreetAsia reported.
Dragon Fund I will make growth equity investments into private, tech, and tech-enabled companies, with deal sizes between $20m and $100m. It will initially focus on the Asia-Pacific region. MARS Growth Capital is a joint venture established in 2021 between Mitsubishi UFJ Financial Group and Liquidity Group, an AI-based financial asset management firm.
HK crypto VC firm CMCC Global launches $100m fund to invest in Web3 startups. (FS)
Hong Kong-based crypto venture capital firm CMCC Global has raised $100m to invest in blockchain firms in the city and beyond. The firm roped in Block.one as its anchor investor, which committed $50m to the vehicle, which is called Titan Fund, DealStreetAsia reported.
Block.one is a software firm known as the developer behind the popular EOSIO open-source software. B1 will become a minority shareholder of CMCC Global’s holding entity as part of the strategic investment. CMCC Global also participated with a 15% GP commitment.
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